Super investment options

Super investment options

Your super fund invests your money for you. Most funds let you choose from a range of investment options, from conservative to growth.

It’s worth taking the time to check your options and decide what’s right for you. The options you choose can make a big difference to how your super grows.

You can find out about your fund’s investment options by checking its website or product disclosure statement (PDS).

Most funds allow you to change your super investment options online.

Pre-mixed investment options


  • Investment mix: around 85% in shares or property, and 15% in fixed interest or cash. Or 100% in shares or property for a ‘high growth’ option.
  • Returns: Aims for higher average returns over the long term. This also means higher losses in bad years than those you would experience with lower risk options.


  • Investment mix: around 70% in shares or property, and 30% in fixed interest and cash. Or ‘moderate’ option with 50% in shares and property.
  • Returns: Aims for reasonable returns, but less than growth funds to reduce risk of losses in bad years. Those losses usually occur less frequently than in the growth option.


  • Investment mix: around 30% in shares and property, and 70% in fixed interest and cash.
  • Returns: Aims to reduce the risk of loss and therefore accepts a lower return over the long term. There is less chance of having a bad year than in the balanced or growth options.


  • Investment mix: 100% in deposits with Australian deposit-taking institutions or in a ‘capital guaranteed’ life insurance policy.
  • Returns: Aims to guarantee your capital and accumulated earnings cannot be reduced by losses on investments.


This option aims to screen out investments in companies that don’t meet certain environmental, social and governance standards. An ethical option can sit anywhere on the risk spectrum — from high growth to conservative.

Choose-your-own investment options

Some super funds let you choose the mix of different asset types or pick direct investments.

For example, you may favour international over Australian shares, and allocate a percentage of your funds to reflect that. Or, you might choose direct investments, such as shares, exchange traded funds or term deposits.


If you have a MySuper account, you’ll most likely have a balanced, single diversified option.

Single diversified investment option

This is how most MySuper accounts work. Your fund puts your money in a standard mix of investments, and the investment approach stays the same for your whole life. These funds usually have a balanced or growth approach.

Lifecycle investment strategy

With this option, your fund will typically move your money from growth investments when you’re young to more conservative investments when you’re older.

Choose the right investment option

When choosing your investment option, consider:

  • your age
  • how comfortable you are with investment risk
  • how long before you will be able to access your funds

Your risk comfort level

Think about how much investment risk you’re comfortable with.

A higher growth option will have higher risk and experience more volatile returns over the short term. But it will usually achieve higher returns over the long term. A conservative option will offer lower risk but lower returns over the long term.

When you’ll access your funds

Some people choose to be more conservative with their investments as they approach retirement to reduce the risk of their balance going down. Others choose to keep their investments in growth options seeking higher returns. There is no one correct approach.

Use our superannuation calculator

Change the investment option in the drop-down and compare the estimated super balance.

Case Study

Pablo, 40, wants to retire when he is 60. To make this happen, he knows he has to build a nest egg. He has some shares and is paying off an investment property with his sister.

Pablo wants a super fund that offers relatively high returns over the long term. He is willing to tolerate the risk of negative returns in bad years. He chooses a growth option as he hopes the good years will outweigh the bad over the next 20.

If you would like to find out more about investment options in your super, simply call the office today on |PHONE| or alternatively, you may wish to book online with a financial planner of your choice.

Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at
Important note: This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. Past performance is not a reliable guide to future returns.
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author. Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.