Yearly rates of return

Rates of return give you a recent and longer term perspective of how each investment option has performed.  Although it’s not a reliable indicator of future performance, an understanding of past performance can help when analysing your investment options.

One of the most important concepts to consider when making an investment decision is that of risk and return. All investments, including super, have some level of risk.

The expected range of annual return outcomes also provides an indication of risk. This varies between each scheme and investment option. Generally, options with the highest potential long-term returns also come with the widest range of returns including the possibility of negative returns. Options with the lowest potential long-term returns come with the narrowest range of returns and the greatest likelihood of positive returns.

Members should be aware capital losses are possible, depending on the investment option(s) chosen and their performance over time. Fluctuations in investment markets will have on-going impacts on performance. This volatility is a normal part of investing and can occur with money you may have in other super funds, the share market, and other types of investment.

Analyse returns in relation to the performance of the market as a whole to get the big picture.