Understanding why your balance moves
We're living in uncertain times, which is causing volatility in investment markets. This can cause your super balance to go up and down.
Super funds may invest in commercial, retail or industrial property that is listed on share markets. They may also invest in infrastructure securities, which own assets such as transport and utilities.
Most super fund portfolios invest in shares (or equities), which are are part ownership of a company. Returns from shares include both capital growth (or loss) and income through dividends.
Super funds invest in cash (such as term deposits) because it provides stable, low risk income (usually as interest payments). These assets usually have a short investment timeframe.
Super funds may invest in government or corporate bonds, mortgages or hybrid securities. These assets operate like a reverse loan – they pay a regular interest payment over a fixed term.