Investment options
When choosing how to invest your super, it is important to understand that each person is different and has different investment needs.
Your investment options
HIP has three ready-made investment options, Growth, Capital Stable and Cash. Each has a different set of objectives and consists of a different blend of asset classes.
HIP gives you the opportunity to create your own investment strategy by selecting combinations from our investment options. All you need to do is nominate percentages of each, in whole numbers, that will total 100%.
If you have less than $1000 in your account, or have never made an investment choice, then your super is automatically invested in the Growth Option. Although the Growth Option will suit many HIP members, we encourage you to consider your investment options.
Balancing risk and return
Risk and return usually go hand-in-hand. Generally, the greater an investment’s potential return, the greater the risk associated with that investment. Similarly, lower-risk investments usually provide lower returns.
What is the right investment option for you?
When making your investment choice it’s important to balance the risk of short-term ups and downs in the value of your superannuation against the higher retirement benefit that an investment in growth assets is likely to deliver over the long term.
Growth assets
Like shares and listed property, offer the likelihood of higher investment returns over the long term (5 years or more),although they can be volatile over the short term.
Defensive assets
Likecash and bonds, are likely to deliver more moderate returns and are usually much less volatile.
Differences between the options
The Growth Option holds mostly growth assets, with very few defensive assets. The Capital Stable Option has more defensive assets, with a smaller amount of growth assets. The Cash Option invests entirely in Australian cash, a defensive asset.
Because it holds mostly growth assets, the Growth Option is likely to produce the highest returns over the long term, although there are likely to be bigger ups and downs along the way. With more defensive assets, the Capital Stable Option is likely to produce lower returns than the Growth Option over the long term and produce a smoother return along the way. The Cash Option is likely to produce returns slightly above bank deposit rates, with minimal fluctuations in value. For this reason, some members consider this a short-term investment.
The main difference between the options is their specific investment objectives, which determines the investment of assets (‘growth’ and/or ‘defensive’ assets).
This website is provided by Private Hospitals Superannuation Pty Ltd ABN 59 006 792 749, AFSL 247063, RSE L0001533, Trustee of Health Industry Plan (SPIN HIP0100AU, RSE R1056617), and is general information only. It does not take into account your objectives, financial situation or specific needs so you should look at your own financial position and requirements before making a decision. Please note that investments can go up and down. Past performance is not a reliable indicator of future performance. You should assess your own financial situation and needs, read the relevant Product Disclosure Statement and consult an adviser if required before making a decision about products on this website.