Great masterminds don’t always think alike. It’s precisely why Australian Retirement Trust provides a range of investment options that you can choose from to invest your super in.
The investor needs quiz is a guide to help you decide:
It is a guide only and does not take into consideration your individual objectives, financial circumstances or needs. You should assess your own financial situation, taking into account your existing investments, commitments, investor needs and time horizon before making your investment decisions.
Your goal is to ensure the security of your investments. You're prepared for your investments to have little growth in return for the peace of mind and stability. You'll invest predominantly in defensive assets and your suggested minimum investment timeframe is 2 years.
Your goal is to have mostly stable returns in the short and medium term. You're prepared to give up the potential for higher returns over the long term for the comfort of less volatility. You'll mostly invest in defensive assets and your recommended minimum investment timeframe is 3 years.
Your goal is to generate wealth over the medium to long term, while having some protection from the ups and downs in the short term. Your investments will be split between growth and defensive assets to achieve a balance between growth potential and risk mitigation. Your suggested minimum investment timeframe is 5 years.
Your goal is to produce returns which are ahead of inflation over the longer term, but you understand that the value of your investments may fall in the short term. You'll mostly invest in growth assets and your suggested minimum investment timeframe is 5 years.
Your goal is to produce strong returns which are well ahead of inflation over the long term. You understand that your investments can have large falls in the short term. You will predominantly invest in growth assets and your suggested minimum investment timeframe is 7 years.
These are examples of possible investor needs. They help guide you when choosing investment options. Explore the results for different responses to our risk profile questionnaire. Different types of investors have different needs so if you're not sure, it could help to get financial advice.
Our range of investment options suit different risk profiles and retirement goals. Take your pick!
A risk profile sums up how you feel about taking risks and the level of risk you're willing to take when you invest in super. It also includes how much risk you can afford to take.
Risk can cover a few things, including the possibility that your investments:
Go up and down in value
Get a negative return
Get returns that are less than you expect over a set timeframe
Underperform against an index or benchmark.
Is the risk worth the return? Knowing whether you'd prefer to get a higher return back on your super or have a lower chance of losing money is called your risk tolerance.
Learn more in our podcast on how to choose your super investments.
Learning how you feel about risk, and how risky you can afford to be, could lead to better investment decisions. Most financial advisers use risk profiling to guide the advice they give you.
So, understanding your risk profile could make quite a change to how much money you have when you retire.
It could be the difference between having the lifestyle you want in retirement and not. So, it's important to think carefully when choosing investment options.
It's easy to switch your investment options in Member Online or the Australian Retirement Trust app.
There's no cost for changing investments and you can invest in more than one option.
Now you know the type of investor you are, it's time to check that your investments suit your risk profile. Get on track to reach your goals.
