Most super funds will encourage you to take an active interest in your retirement savings by selecting the investment strategy that suits your personal situation and age.
Before making a decision on choosing the mix of investments for your super savings, there are a few questions that you need to ask yourself:
Answering these questions will help guide you in choosing the right investment mix or option for your super savings.
Super funds generally allow you to invest in a wide range of asset classes, or categories of investment. These are generally shares, property, fixed-interest securities or cash. They differ in the amount of risk involved and the potential for returns or losses.
As a general rule, growth orientated investments like shares are likely to have higher returns over the longer-term. But they can also be volatile and even go backwards over some periods.
The right choice for you will depend on your personal circumstances.
If you don’t make a choice, your superannuation savings will automatically be invested in the fund’s Default Option (the investment option you get when you don’t make a choice). This is usually a balanced investment portfolio that contains a range of shares, property, bonds and cash using a variety of investment managers.