Super funds make investments depending on the different levels of risk chosen.

There are 5 types of pre-set investment options which you can choose for your superfund. Remember that if you want more control and flexibility, opting for a SMSF option might be ideal for you.

Growth

• 85% shares or property and 15% fixed interest or cash (can also be 100% shares or property)
• Expect higher average returns (with risk of higher losses)

Balanced

• 70% shares or property and 30% fixed interest or cash (can also be 50-50)
• Expect reasonable returns with reduced risk compared to ‘Growth’

Conservative

• 30% shares or property and 70% fixed interest or cash
• Expect lower returns due to much lower risk

Cash

• 100% in deposits with Australian deposit-taking institutions
• Expect accumulation of interest over the years – no losses incurred

Ethical

• Invest only in ethical companies i.e. companies that meet environmental, social and governance standards
• Investment, risk and return can sit anywhere on the spectrum

Make your investment choice based on how much risk you are willing to take. If you feel comfortable taking greater risks with your super because you have other investments you can rely on, then the growth option might be good for you. However, if you are relying on your super to fund your retirement, then the balanced approach might be more appropriate.