How to invest when you know nothing

If you’re not sure how to start your investment journey, then your super could provide you with the perfect launchpad. 

Key learnings covered in this topic

  1. Your super is more than savings
  2. Asset diversification
  3. Your risk tolerance and how we can help. 

Your super is an active investment portfolio that’s already working hard to build wealth for your future. Getting more hands on and learning how it works could give you the confidence you need to start investing like a pro.

You super is more than a savings account

Your super isn’t just a bank account, it’s an investment account made up of diversified assets chosen by experts for their growth potential. As these assets increase in value and generate interest so does your super balance, with the returns reinvested so they too can earn interest. Over time, this reinvestment cycle works with your regular contributions to continually build a nest egg for your retirement. Find out more about how your super grows. 

Diversified assets can be your best friend

Diversification can help protect your savings from unpredictable investment markets. This means spreading risk across multiple types of investments like growth assets (like shares and property), or infrastructure and defensive assets (like fixed interest or cash). This balanced approach means if one investment type performs poorly, the performance of other types may offset the loss. Learn more about diversification. 

Know your risk tolerance

When it comes to money everyone has a different risk tolerance. In general, the higher the risk the higher the expected return, but this isn’t always the case, and not everyone can handle the anxiety of fluctuating markets. So, think about what you want to achieve, your investment timeframe and how you’ll react if markets are rocky. If you’ve signed up for MemberOnline, you can take our risk attitude quiz.

How’s your super is set up? Most likely you’re in an investment option that’s managed for you by our experts. There are 12 managed options available for you to choose from. As a first step, find out how these options are constructed to suit a variety of risk tolerances and expected investment returns.

Once your confidence and knowledge improve, our Direct Investment Option might be the next step. This option lets you take the reins and largely self-manage your super portfolio. You make the decisions on what to buy and sell from of a range of shares, exchange traded funds (ETFs), listed investment companies and term deposits, in combination with CareSuper’s managed options. 

We’re here to show you the ropes

Don’t worry, as you continue on your investment journey, we’re with you every step of the way. At no extra cost our CareSuper financial planners can teach you about risk, diversification, growth and defensive assets, and investment returns and take you through the Direct Investment Option and our 12 managed options, to help you  learn the basics and create your investment strategy. It’s all part of your membership, so get started and call us on 1300 360 149.

Information correct as at 10 April 2024.