Super Toolbox
My Super- What are the risks?
Please read our general advice warning »
When you make an investment choice, there is always a trade-off between risk and return. Your attitude to risk can be influenced by a number of factors including:
- number of years to retirement
- amount you require to retire comfortably- see calculator
- whether you have other investments
- your knowledge of investing
It is important to balance the risk of short-term fluctuations in the value of your superannuation investment against the long-term retirement benefit that a well-diversified investment strategy, including an investment in growth assets, can provide.
Balancing the risk against the return
MTAA Super aims to contain risk while generating potential greater investment returns through the use of a well-diversified portfolio of unlisted assets (the Target Return Portfolio).
Over the long term, this portfolio has exhibited strong returns without the corresponding higher risk.
Historically, MTAA Super's Target Return Portfolio has consistently achieved strong long-term returns with lower corresponding risk (as measured by the standard deviation, that is, volatility of returns). Note however, that long-term historical data may not be a good predictor of future outcomes, particularly in the short term.
For a detailed description of the types of investment risks click here