How is super invested?

Super is a framework for holding investment assets, not an investment asset itself.

Super funds can hold a broad range of investment assets. Common investment assets (asset classes) include property, shares, cash and fixed interest. Click here for more information on the asset classes that super funds invest in.  Many super funds will invest in these asset classes through a managed fund rather than investing directly in assets themselves.

Most super funds offer you the ability to choose an investment strategy for your account. This can be done by choosing within the range of ‘investment funds’ a super fund offers. Each investment fund has its own investment objective and way of achieving it. Different investment funds may invest in different types of assets, such as cash, fixed interest, property or shares, or even a combination of these (called diversification). History shows that all methods have different returns and levels of risk (defensive to high growth), to suit a variety of investors and economic climates. Click here for more information.

When you become a member of a super fund, your account will be automatically invested in what is known as a ‘default’ investment strategy. The default investment strategy may not be appropriate for your personal circumstances and needs  so you must consider whether it is appropriate for you. You can switch from the ‘default’ strategy by choosing one or a combination of investment funds on offer.

Remember, the right investment choices for you will depend on your financial objectives, your investment time horizon and your attitude to risk. How much super you have in retirement will depend to a large degree on the decisions you make about investment funds. Make certain you’re in the right one! Choosing the right investment strategy is not as complicated as it seems. ING has developed a tool to provide guidance on the type of investor you might be. Click here to access "Determine your investor profile". Of course, your financial adviser is the best person to help you select the most suitable investment funds in super.

Click here to learn about accessing your super, or use the menu on the left to navigate through other super educational information.