With $2.7 trillion* in super, it’s now the second largest part of Australia’s financial system. So where does that money actually sit?
Well, it’s invested in a range of different assets by your super fund, on your behalf. The types of assets it’s invested in are similar to those you can invest in outside super, such as shares, property, and cash.
But while your fund invests your super for you, you can still play an active role in how your super grows through something called investment choice.
Investment choice means you can pick which investment option – or combination of options – you want us to invest your money in on your behalf. Each option is generally composed of a certain type of asset, or a particular mix of assets. Each option carries with it a different level of risk and potential for reward.
The types of assets your super is invested in depends on the option you choose. These assets can be broadly categorised as either growth or defensive assets.
*As of 30 March 2020, ASFA