How to choose your investments

Some superannuation account holders don’t realise they have control over what their super is invested in, can access detailed information on those investments, and stay up to date on their performance.

smartMonday allows you to access this information at any time by logging in to your account online, visiting our website or by calling us.

“Superannuation is a key contributor to Australians’ retirement savings. This means it is critical to understand how the investment in your super works and what you can do with it,” says smartMonday smartCoach Christopher Haddad.

The first point to note is that you can review your current investments by logging in to your account. You will arrive at your personal homepage and see your investments graph, which shows what investment options you are invested in and how much money is allocated to each option.

If you’re considering switching investments, you may like to review what our options are and how they work.

“We have five options based on specific sectors, such as ‘Australian shares’, and another five that are a mix of sectors based on their level of risk, such as ‘Balanced Growth’. (Variations of these options are also available to pension members.) And then there is our MySuper option,” says Haddad.

It’s easy to change your investments by selecting the ‘Details’ button on your personal homepage. Alternatively, you can complete our switching investment options form. (There’s no cost to switch investment options.)

• Read a quick guide to smartMonday's investment options

• Find out exactly what your super is invested in

• We report on our investment returns monthly

Most smartMonday members invest in MySuper, so it’s worth explaining that unique option.

“What makes MySuper different is that it is a ‘lifecycle’ investment strategy. This is when your investment mix changes as you age, essentially from a high-risk, high-growth exposure early in your working life, becoming more defensive as you age to preserve what you have as you get closer to retirement,” explains Haddad.

It’s the only lifecycle option smartMonday offers. All others are focused on one investment category (e.g. international shares) or one risk category (e.g. high growth).

• Read how smartMonday Lifecycle (MySuper) works

Usually, the biggest concern in making an investment choice is your life stage.

“The typical strategy is based on superannuation being a long-term investment that generates gains over decades to fund the life you want after work. Accepting higher risk early on means greater gains can be generated while there’s time to ride out those years if returns are negative. Closer to retirement that might not be a risk you’re comfortable with,” says Haddad.

Many superannuation account holders are also interested in ethical and sustainable investing. As smartMonday members are more concerned about climate change than the average Australian, this is a particular concern for them.

Last year we wrote about how we invest to avoid most coal and higher carbon footprint companies. We continue to work on how we can improve the environmental and social effect of our investments and will update you as we make progress.

• Read smartMonday members more active over climate change

• Read our explanation of investment risk

• Read about the future for coal and your super