When it comes to super, most people don’t put all their eggs in one basket, and generally invest their money in a pre-mixed investment option. When investing your super, you need to consider balancing long-term financial goals against the risk of losing money, especially over the shorter-term. The general rule is that as the potential for a higher return increases, the risk of loss also becomes greater. This is known as the 'risk/return relationship’. When choosing where to invest your super you need to strike a balance between the risk you’re comfortable with and the rate of return you need to achieve your retirement goal.
Whether you’re working, approaching retirement or are already retired, you also need to consider:
| Overview | The strategy works by investing your retirement savings in a mix of the High Growth and Conservative Balanced* investment options based on your age. The philosophy of the strategy is simple: to give you significant exposure to growth assets such as shares (the High Growth investment option) in the early stages of your working life, and then gradually reduce this as you get older by increasing your exposure to defensive assets such as bonds and cash (the Conservative Balanced investment option). |
| Risk level | High – Medium to high risk. |
| Investment time frame | Suitable for people who wish to invest their super for five or more years. |
| Overview | High Growth accepts higher risk to maximise returns. It invests primarily in shares, that aim to maximise returns by taking greater risk, with a small allocation to defensive assets such as bonds and cash. |
| Risk level | High. |
| Investment time frame | Suitable for people who wish to invest their super for five or more years. |
| Overview | Growth aims to optimise the risk and return potential. It invests primarily in shares, that aim to maximise returns by taking greater risk, with some allocation to infrastructure, alternatives and defensive assets. |
| Risk level | High. |
| Investment time frame | Suitable for people who wish to invest their super for five or more years. |
| Overview | Balanced aims to provide a balance of risk and return. It invests mainly in shares and fixed income, with a small allocation to property, infrastructure and other alternatives. |
| Risk level | High. |
| Investment time frame | Suitable for people who wish to invest their super for four or more years. |
| Overview | Indexed Defensive is a low-cost passively invested option. Indexed Defensive invests the majority of its defensive assets in fixed income and cash and its growth assets in Australian and International Shares. |
| Risk level | Medium. |
| Investment time frame | Suitable for people who wish to invest their super for three or more years. |
| Overview | Capital Guarded aims to offer diversification across major asset classes with some exposure to growth assets. Capital Guarded invests in a range of predominantly defensive assets including cash and fixed income. Capital Guarded also invests some of its portfolio in growth assets, such as shares and property. |
| Risk level | Low to Medium. |
| Investment time frame | Suitable for people who wish to invest their super for three or more years. |
| Overview | Secure aims to provide a low to medium risk investment with 90% invested in cash, a defensive asset that has a lower short-term risk but provides low long-term returns. It also invests 10% in Australian shares, which are a growth asset. Please note, although Secure is our lowest risk pre-mixed investment option, it's possible it could generate a negative return, particularly over the short-term. |
| Risk level | Very Low. |
| Investment time frame | Suitable for people who wish to invest their super for two or more years. |
Single asset class investment options invest in one asset class only; each with different levels of risk and return potential. They allow you to build your own asset allocation across multiple asset classes. We offer the following single asset class options:
You can choose to invest into any mix of pre-mixed options or single asset class options to best meet your own financial goals. Before deciding which investment options are appropriate for you, it’s important to understand a little about asset classes (which are the building block of any investment) and work out your savings goal, risk tolerance and investment time frame. You should also read the Super PDS and / or Pension PDS, and be familiar with our Target Market Determinations.
You can change your investment mix in your online account. From the main menu, select Manage my super, then Change where my super is invested.
Not sure what to do? Advisers from Mine Super Financial Advice can help you get clear about your goals and help you make a plan to achieve them. Mine Super members are entitled to a complimentary initial consultation. And did you know? Advice on how your account is invested is at no extra cost, but there are fees associated with providing personal financial advice. During your appointment your adviser will discuss the fees and how you’d like to proceed.
Meet the team or request an appointment with Mine Super Financial Advice.
*The Conservative Balanced investment option forms part of the Lifecycle Investment Strategy only and is not otherwise available for investment.