Understanding Super Investment Terms

Aug 21, 2023

The language around investing in super can be confusing. AustralianSuper takes a look at some terms to better understand when you’re reading investment news:

Investment risk
This is the possibility an investment, such as shares, falling in value or not providing expected returns. 

Key investment risks include rising and falling markets and inflation, if returns don’t stay ahead of inflation rates.

Growth and defensive assets 
Growth assets, like their name suggests, have the potential for higher returns, providing an opportunity for long-term growth. 

However, they can be more at risk of rising and falling in value, as financial markets move through different cycles.  Listed shares and private equity are examples of growth assets.

Defensive assets, such as fixed interest and cash, are historically more stable than growth assets, with steadier returns over the long term. 

Asset allocation
This refers to how much is invested in each asset class, or type of asset.  A well-diversified investment portfolio will aim to have a balance of defensive and growth assets.
 

Learn more about super investment terms here.

 

Disclaimer:
This information may be general financial advice which doesn’t take into account your personal objectives, financial situation or needs. Before making a decision about AustralianSuper, you should think about your financial requirements and refer to the relevant Product Disclosure Statement available at australiansuper.com/pds or by calling 1300 300 273. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the TMDs at australiansuper.com/tmd.
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