Superannuation

MySuper funds are accumulation-based superannuation funds that offer relatively low management fees, have limited investment options and have a single approach to managing your money.

The trustee of a MySuper fund can generally choose to manage your money under one of two options:

1. 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.

2. 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 a decision to choose your own super fund would be in your best interests.