Exploring different types of investments in simple terms

At First Super, we offer various investment options that are made up of different types of assets. An asset is like a tool you own that is expected to benefit you in the future, such as by increasing in value. Let’s take a look at the main types of assets:

Shares (equities):

Shares represent ownership in a company. Returns can come from dividends (a share of a company’s earnings) and changes in the share price. Shares have historically performed well in the long term, but they can also have ups and downs in the short term.

Property:

This includes different types of properties like commercial, industrial, and retail. Earnings come from rent and changes in property value over time. Property investments have historically provided medium to high returns but also come with a moderate to high level of risk.

Fixed Interest:

This is like lending money to the government or a company, often through government bonds. It offers a fixed rate of interest for a specific period. Fixed interest investments historically offer moderate returns and moderate risk.

Cash:

Cash is like having money in a bank account or term deposit where you earn interest. Cash investments historically offer lower returns but come with the lowest level of risk.

Alternative Assets:

These assets don’t fit into traditional categories and can include infrastructure such as roads and airports, absolute return funds (e.g. hedge funds), and private markets. They provide unique risks and returns that could differ from other asset classes.

Understanding Investment Options and Risk

Each investment option has different goals for returns and risks based on the combination of assets. The right choice for you depends on how much risk you are comfortable with.

Growth Assets:

These assets may have ups and downs but have the potential to grow enough over time to outpace inflation. Examples include Australian and international shares.

Defensive Assets:

These assets aim to protect against negative returns and provide stability, even if they may offer lower long-term returns. Examples include cash and government bonds.

If you want more information on our investment options or need help deciding, feel free to contact us at 1300 360 988. As a member of First Super, you can speak with a Financial Adviser at no extra cost.

Ready to make informed investment choices? Explore our specific investment options.