Choosing the right investment option or mix of options for your risk profile and investment horizon can make a big difference to your super balance in the long run.

Consider your risk/return profile

Your risk/return profile simply means your tolerance to risk – are you willing to accept a higher level of risk for a potentially higher return on your super investment?

Achieving a higher investment return generally requires the investment to have a larger exposure to growth assets, such as equities (ie, company shares). For example, VicSuper’s Equity Growth Option has a 100% investment allocation to equities, whereas the Capital Secure Option has 20% allocation to equities. In the longer term, the Equity Growth Option is expected to have a higher return than the Capital Secure Option.

Consider the timeframe for your investment in super

The longer your super is invested, the longer you have to ride out short-term fluctuations in equity markets. It is generally accepted that investing in equity markets won’t be all plain sailing – short-term volatility in both Australian and international equity markets is expected. But over a long period of time, the trend is definitely upwards.

You should note that past investment performance, however, is not a guarantee of future investment performance. You can find out more about VicSuper’s seven investment options and their varying level of risk and return, at vicsuper.com.au/investments