Investment strategies

Super products are issued by Sandhurst Trustees Limited

Long term investments are designed to grow over time, and your super is no different. Understanding investment strategies can help you make the most of your super throughout its lifecycle.

When choosing an investment strategy, consider the following:

  • your age
  • how comfortable you are with investment risk
  • how long before you can access your funds
  • your retirement goals

If you won't be accessing your super in the short term, you may want to consider a more aggressive strategy with time to ride out any market fluctuations.

A lower risk, lower return strategy could suit those who prefer greater security and less risk. This strategy may suit if you're retiring and intend to withdraw your super in less than 5 years.

What is your risk tolerance?

How you invest your super balance comes down to how much risk you're willing to take. All investments have some level of risk with the potential to deliver poor or negative returns at times. Generally, the higher the risk you're prepared to accept, the higher the potential return in the long term.

Types of investment

Most super funds offer a range of investment types, from low to moderate to high risk. Depending on what stage of life you’re at, your risk tolerance may influence the type of investments you make:

Investment type (asset class)General risk-return level
Cash (savings accounts, term deposits)Low risk, possibly low returns
Fixed interest (bonds, debentures)Low risk, investments can be linked to inflation rate
Property (buildings, land, factories)Moderate to high risk
Equities (shares)High risk due to numerous economic and global factors