Diversification is a risk strategy that lets you ride the ups and downs of investing. It reduces your exposure to risk, so your investments won’t be as affected by fluctuations in markets.
Investment diversification can be achieved by choosing a mix of:
You can also invest at different times to reduce your level of risk through investment strategies, such as dollar cost averaging.
Super funds employ investment managers to decide on the best investment approach for members of the super fund. They actively diversify investments within and across different asset classes.
The investment manager then buys and sells assets on behalf of super fund members with the aim of delivering the best possible investment returns.
Most funds will allow you to choose from a range of superannuation investment options with varying levels of risk and return (such as conservative, balanced or high growth, for example).
You may think having your super spread across multiple super funds means you’re diversifying. However it also means you’re paying multiple fees and your super savings are harder to keep track of.
You might want to consider consolidating your super today so you can:
Before you consolidate, it’s a good idea to check if you’ll pay any exit or withdrawal fees from your existing super fund and if you hold any insurance in your existing fund and want to keep it, whether you can transfer this over.
Everyone’s situation is different. So you need to think about your personal situation, your investment goals and the level of risk you’re prepared to take, to ensure your investment option within your super is right for you.
While your super fund investment managers are managing your super investments for you, it’s still a good idea to keep track of how your investments are performing.
If you’re an AMP customer, remember to log into My AMP where you access your super statements, view up-to-date unit prices in your investment portfolio summary, change the way your super is invested and much more.
Source: Produced by AMP Life Limited
© AMP Life Limited. This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, AMP does not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, AMP does not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.
Invest Blue Limited (ABN 91 100 874 744) and Subsidiaries trading as Invest Blue, is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited, Australian Financial Services Licensee and Australian Credit Licensee.
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