Investment basics

In the short term, your account balance may go backwards with negative earning rates. Over the long term though, your account balance should increase with investment returns. Remember, super is an investment that spans over 40 years of working life, and beyond.

There is a possibility you won’t earn enough to keep the balance of your account ahead of inflation. This reduces the balance of your account in ‘real’ terms.

Your account balance could be affected by changes in currency exchange rates if the fund does not invest on a hedged basis.

If interest rates rise or fall, your account balance could be affected.

Superannuation laws may change in the future. This could affect your account balance, ability to make contributions, access to super or its tax treatment in a positive or negative way.

The entire market could decline at the same time - not just one or two types of asset classes. This could affect your account balance.

One specific investment, such as shares in a particular company, could experience a major drop in value. This risk is reduced through diversification of investments.

If countries and regions experience political change, economic crisis or war, there is a risk your account balance may be affected.

By making one investment, you could be missing out on another investment with better opportunities for growth.

By avoiding investments that do not meet socially responsible criteria, you could miss out on higher investment returns, and/or increase risk. This is because socially responsible criteria limit the pool of investments an investment manager can select from. What's more, the additional costs associated with socially responsible investing can be significant.

Diversification reduces the exposure to any one particular asset or risk. Exposure across different assets can help reduce the volatility of any one particular asset class on your super savings.

Brighter Super’s ready-made investment options (including our default investment option for Accumulation accounts, MySuper) are highly diversified, with allocations to global and domestic sharemarkets, infrastructure, property, fixed income, cash and alternative investments. Sharemarket movements impact only part of the overall returns of Brighter Super's default investment options. This means a fall in one asset class may be offset by better performance from another asset less prone to volatile movements. And within asset classes, we diversify even further by spreading investments across different investment managers and strategies, as well as different industries and sectors. 

Every financial investment carries with it an element of risk. When making investment decisions, it's important to consider the timeframe over which the investment will be made, as well as your own personal set of circumstances. Your investment timeframe impacts the expectation of return or reward of the investment decision as well as the level of risk that can be tolerated.

Superannuation is generally a long-term investment, intended to support your income in retirement. If you are planning to access your super in the short term, your investment timeframe will be reduced for the portion of super you intend to draw which may influence your investment decisions. 

Our news stories will keep you up to date with Brighter Super news and events, and provide you with information that will help you make the most of your super.

Our news stories will keep you up to date with Brighter Super news and events, and provide you with information that will help you make the most of your super.