MySuper funds are accumulation based superannuation funds that offer lower fees and a single approach to managing your money.
The trustee can choose to manage your money under one of two options:
- Single diversified investment strategy – the manager chooses a mix of asset classes to invest your money into. Generally they will take a “balanced approach” which means roughly 30% will be invested into cash and fixed interest and the remaining 70% into shares and property. The mix can vary from fund to fund.
- Lifecycle investment strategy – the mix of asset classes that your money is invested into will change as you get older. The mix will have a greater proportion of shares and property (growth assets) when you are younger and less of these growth assets as you get older.
Just because these are the default options does not mean they are the most appropriate option for you. Advice can help to decide how appropriate the option is or whether you should choose your own fund.