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Choosing the

right investment option

Published December 2022

Author image
Financial Planning
5 min read
Updated 28 Nov 2023
  • Super 101
  • Know your investments

The way your super is invested could make a big difference to how your money grows. But how do you decide which investment option is right for you?

If you're a Hostplus member and you don't actively choose where your super is invested, your money's invested into our default Balanced (MySuper) option. It's designed for members who prefer to leave investment decisions to us.

But if you'd like a more hands-on approach to your super investments, you can do that too. Once you understand the basics of how investment options work, it's easier to choose an option that could best help you towards achieving your retirement goals. Here are some tips to get you started.

Watch our video to learn how choosing the right investment option can support your journey to retirement.

1. Know your appetite for risk

Your investment returns play a big part in your ability to reach your financial objectives for retirement. That’s why it’s important to understand your risk appetite – that is, the level of investment risk you’re comfortable with – before you select an investment option.

When it comes to investments, risk and returns are related. All investments involve some level of risk because there’s always a chance that your investment doesn’t produce the return you expected.

Investment options are normally categorised as either low, medium or high risk. In general, a low-risk option has a lower chance of a loss, but also has a lower expected return. A high-risk option has a higher chance of a negative return in the short term, but also has the potential to deliver high returns over the long term.

So before you choose an investment option, consider how prepared you are to see your balance go down in the short term in the interest of potentially getting a better long-term return. 

2. Consider your age and investment time frame

You may not know exactly when you’ll be retiring, but thinking about your investment time frame – that is, how long your super will be invested and how long you want your retirement savings to last – can help you decide which investment option best suits your financial goals.

If you’re investing over a short time frame, you may want to select an option with a lower risk of short-term losses, even if that means your returns may not be as high.

On the other hand, if you know you won’t be accessing your super for a few decades, you could be willing to invest in a high-risk option knowing that you have the time to ride out any ups and downs in the market.

3. What's important to you?

When it comes to investing your super, what matters to you the most? Do you want to keep the cost of investing as low as possible, or invest in options that align with your personal values? Maybe you just want the highest possible net returns.

When you identify your investment priorities, you can start to match them to the options that might be suitable for you.

At Hostplus, we offer a range of investment options because we know not everyone's the same. You can choose one or more options to suit your risk appetite and financial objectives.

We're here to help

You don't have to make an investment choice on your own. We offer financial advice online, over the phone or face to face that can help you work out which investment option may be right for you.

Then, when you're ready to make a choice, simply log in to Member Online and select the 'Manage investments' tab. You can choose to invest in one or more options, and switch between options at any time. That's a plus.

Net investment returns represent the rate of return on investments after investment-related fees, costs and taxes have been deducted. Other fees and costs may apply. Past performance is not a reliable indicator of future performance and should never be the sole factor considered when selecting a superannuation fund.