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Investment and your super

Got a super account? That makes you an investor. But how much do you know about the types of investments you’re invested in and how they work? Let’s take a look at some of the basics when it comes to asset classes, how they differ, and why it matters for your future.

How is your super invested?

Super funds usually invest in a range of investments to help your savings grow over time. And these different types of investments – or ‘asset classes’ – all have different characteristics. Understanding how they behave and what they can bring to an investment portfolio can help you to make more informed decisions about how your super is invested.

In this article we take a look at:

  • Growth versus defensive assets
  • How the asset classes compare
  • Putting it all together for your super

Growth vs defensive assets

Before we dive into the different asset classes, here’s a handy concept to be aware of –  growth versus defensive assets.

Different types of investments are broadly grouped into categories called ‘asset classes’, the most common being cash, fixed interest, shares, property and alternative investments. And these are usually described as being either ‘growth’ or ‘defensive’.

Growth assets (like shares and property), get their name from their growth potential. Over longer timeframes, the underlying investment tends to go up in value as a result of capital growth. Over shorter time frames however, they can experience frequent changes in value (volatility) – and this usually makes them higher risk.

Defensive assets (like cash and fixed interest) are known for being lower risk investments (especially over shorter timeframes), and their ability to generate steady income returns. They’re generally less volatile than growth assets over shorter timeframes and typically produce steadier returns over shorter periods as a result. However, over longer time frames they are likely to produce lower returns than growth assets.

Key takeouts

Growth assets – tend to be riskier in the short term but more rewarding over time.
Defensive assets – generally don’t grow as fast as growth assets but may help protect your money when markets are bumpy.

Asset classes explained

This side-by-side comparison delves into the main asset classes in more detail, as well as the potential pros and cons they can bring to a typical investment portfolio (like the one you might hold through your super account).

Asset classWhat are they?Some pros and cons
CashCash investments can include deposits in bank account like term deposits or high-interest savings accounts, as well as sort-term money market securities. Cash can be good for short-term stability, but it’s unlikely to make your money grow much. Think of it as the “rainy day” part of your super.
Fixed InterestWith fixed interest investments (or ‘securities’) - like bonds or debentures – your money is essentially lent out in exchange for interest are a type of loan that’s provided to the issuer for a fixed period of time.Fixed interest is more stable than shares, but it can still move around if interest rates change. Think of it as a defensive investment that has a little more kick than cash.
SharesShares (also called ‘equities’), are actually part ownership in an underlying company that’s listed on a share market (like the ASX or the Dow Jones).Shares can go up and down in value pretty quickly, but over the long term, they tend to deliver strong growth. If you’ve got a long time to grow your super before you retire, shares could be your friend.
PropertyWhen it comes to super, property investments usually mean ownership or part-ownership in commercial buildings like offices and shopping centres, or industrial properties like warehouses – often through investments in listed property trusts.Property can provide rental income and potential growth, but it’s less liquid than investments like shares (i.e. it’s harder to sell quickly), and it can be affected by market cycles.
InfrastructureInfrastructure investments include a broad range of assets, for example toll roads, airports, water utilities, power generation facilities and pipelines. Infrastructure asset values can both rise and fall, with risks coming from things like changes in government regulations, how the economy is performing, and inflation.
Alternative investmentsAlternative investments include a variety of investments that don’t necessarily fall into the traditional asset classes shown above. Things like infrastructure investments (think airports and toll roads), private equity, commodities (like gold), and a range of other investments. Alternatives generally provide capital growth, and some also have the potential to provide steady income. They can help spread risk and sometimes deliver strong returns, but they’re more complex and less transparent than traditional assets.
Key takeouts
  • A mix of growth and defensive assets helps your super grow steadily while managing risk.
  • The longer you have until retirement, the more growth assets you can usually handle.

Putting it all together for your super

Understanding how different types of investments behave can help you make investment choices for your super that are better suited to your goals and your financial needs. For example a 20-something who’s just starting out in super is likely to have quite different goals for their super from someone who’s about to retire. And that’s largely because the 20-something still has a much longer investing time frame ahead of them.

Issued by Togethr Trustees Pty Ltd ABN 64 006 964 049, AFSL 246383 ("Togethr"), the Trustee of Equipsuper ABN 33 813 823 017 ("Equip Super"). The information contained is general advice and information only and does not take into account your personal financial situation or needs. You should consider whether this information is appropriate to your personal circumstances before acting on it and, if necessary, you should seek professional financial advice. Where tax information is included, you should consider obtaining taxation advice. Before making a decision to invest in Equip Super, you should read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the product which are available at equipsuper.com.au. Financial advice may be provided to members by Togethr Financial Planning Pty Ltd (ABN 84 124 491 078 AFSL 455010) – a related entity of Togethr. Past performance is not a reliable indicator of future performance.

© 2023—2025 Togethr Trustees Pty Ltd ABN 64 006 964 049 AFSL 246383 — *Past performance is not an indication of future performance.
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