Performance versus risk

It's natural to want to know how your super has performed in the past. However, past performance of an investment option is not a reliable indicator of future performance. It's a balance between what you want to achieve and the level of risk you're prepared to take.

Return versus risk: it's your decision

Find your comfort zone	Consider your time frames	Check out performance	Consider diversifying

We all have different attitudes towards risk. Consider how comfortable you are with the possibility of losing money, or that the returns on your investments could fluctuate widely from year to year. This is a personal decision only you can make.

High-risk strategies can offer higher returns and should usually be considered over a long time period. A low-risk option may suit you if you have a short investment time frame or are uncomfortable with the volatility of high-growth assets.

Performance is usually shown as a percentage over a specific period of time. You will get a more realistic picture of an investment option's past performance by looking at it over a longer term, not just the last year. However, this is not a guarantee of future performance.

If you are not happy with the level of risk you have chosen, or the returns you are getting, there's often no need to throw out the baby with the bathwater. If your fund manager offers a diverse range of investments, you may be able to change your investment portfolio without changing your super fund.

How to get the most from your super.

BT's Risk Profiler helps you to understand how you feel about risk and shows which investment strategies you could consider to match your risk profile.

Find out more about investment

Find a financial adviser using BT's Adviser Referral Program.
Learn about BT's super funds.