4 common myths out investment risk

opportunities from across the world and across different types of assets including:

Listed Shares

Owning listed shares means owning part of companies that are listed on a public exchange, like the Australian Stock Exchange (ASX). AustralianSuper invests in Australian and international companies.

Listed shares generally make money in two ways –through an increase in the share price and when companies pay dividends.

invest.

Credit

Credit investments involve providing finance for an agreed period in exchange for a return. AustralianSuper has a specialised team that invests in private credit opportunities directly in the property and infrastructuresectors.

Fixed Interest

can come from rising and falling markets creating uncertain market conditions. If you need your money during a downtown, then your investment may not have enough time to recover.

Private equity

In the short-term, generally up to 5 years, the biggest risk can come from rising and falling markets creating uncertain market conditions. If you need your money during a downtown, then your investment may not have enough time to recover.

Fixed interest investments provide income from interest payments. Fixed interest investments include bonds and debt issued by governments and companies.

Cash

But in the longer term, avoiding any investment in shares often comes at the cost of lower returns.

Private equity involves investing in companies that are not listed on a public exchange like the ASX. AustralianSuper co-invests in private equity along with specialised private equity managers.

Unlisted infrastructure

Cash is a low-risk choice

But in the longer term, avoiding any investment in shares often comes at the cost of lower returns.

Cash is a low-risk choice

Infrastructure investments are assets that provide essential public services.These include bridges, roads, airports and power plants. AustralianSuper’s portfolio includes large-scale infrastructure investments in Australia and international markets pension alone can provide.

Cash – investing in short-term money market securities and some short-term bonds – is a relatively low-risk investment. It can provide more stability but also delivers lower returns.

And while the Government Age Pension provides a safety net, many retirees aim for a more comfortable lifestyle than the pension alone can provide.

With government data showing the average retiree aged 65 is likely to live for around another two decades1, continuing to invest in growth assets may be worthwhile.

With government data showing the average retiree aged 65 is likely to live for around another two decades1, continuing to invest in growth assets may be worthwhile.

Cash investments are short-term money market instruments. These are issued by banks, like the CBA, NAB and Westpac, governments and companies

Changing market conditions are the only risks

Cash – investing in short-term money market securities and some short-term bonds – is a relatively low-risk investment. It can provide more stability but also delivers lower returns.

Global diversification

AustralianSuper has investments throughout the world. This helps support Australia’s economy while members benefit from growth in local and international markets. Importantly, this global approach can help reduce investment risk through diversification.

If you’re planning to invest for more than 20 years, focusing on the long-term allows you to invest in assets that offer the chance of higher returns, such as shares.

Moving investments to cash to avoid short-term market conditions can also risk missing out on stronger returns when markets recover. includes large-scale infrastructure investments in Australia and international markets

If you’re planning to invest for more than 20 years, focusing on the long-term allows you to invest in assets that offer the chance of higher returns, such as shares.

Moving investments to cash to avoid short-term market conditions can also risk missing out on stronger returns when markets recover.

Changing market conditions are the only risks

Market rises and falls need to be considered over medium (5–20 years) and long-term (20 years plus) investing, but it’s also important to allow for inflation.

Market rises and falls need to be considered over medium (5–20 years) and long-term (20 years plus) investing, but it’s also important to allow for inflation.

Price rises over time can affect the purchasing power of your money. The face value of $100 in your pocket stays the same but in reality it’s worth less over time as prices rise.

Managing your risk strategy

Price rises over time can affect the purchasing power of your money. The face value of $100 in your pocket stays the same but in reality it’s worth less over time as prices rise.

Managing your risk strategy

Risk is a normal part of investing, AustralianSuper can assist with personal advice on your investment options, super and retirement planning - at any stage of life - including helping you find a financial adviserdiversification.

Get advice about investment and risk, to learn about options available visit Explore Advice Options

Risk is a normal part of investing, AustralianSuper can assist with personal advice on your investment options, super and retirement planning - at any stage of lifeincluding helping you find a financial adviser.