Why is an investment risk profile important?

Learning how you feel about risk, and how risky you can afford to be, could lead to better investment decisions. Most financial advisers use risk profiling to guide the advice they give you. So, understanding your risk profile could make quite a change to how much money you have when you retire.

Why does my investment choice matter?

It could be the difference between having the lifestyle you want in retirement and not. So, it's important to think carefully when choosing investment options. Investing in the higher-risk options in your super has the potential for higher growth. But there's also more risk of a negative return. And you're likely to see more short-term ups and downs. On the other hand, lower-risk options are less likely to see negative returns and major variations in value. But they can often have potentially lower returns and growth over the long term.

How do I change my super investments?

It's easy to switch your investment options in Member Online or the Australian Retirement Trust app. There's no cost for changing investments and you can invest in more than one option.

Risk profile quiz | Australian Retirement Trust

Get ready to discover what sort of investor you are

Great masterminds don’t always think alike. It’s precisely why Australian Retirement Trust provides a range of investment options that you can choose from to invest your super in.

The investor needs quiz is a guide to help you decide:

How you feel about risk and return
How you may like to plan for your goals
How those decisions may influence the way you invest your super.

The investor quiz is not a substitute for professional advice

It is a guide only and does not take into consideration your individual objectives, financial circumstances or needs. You should assess your own financial situation, taking into account your existing investments, commitments, investor needs and time horizon before making your investment decisions.

Question 1 of 7:

What is your age?

75+

60 - 74

50 - 59

Under 50

Now, or within 2 years

2 - 5 years

5 - 10 years

More than 10 years

Within 3 years

3 - 5 years

5 - 10 years

More than 10 years

Prioritise security with lower returns

Some stability with improved returns

Focus on better returns, while accepting more volatility

Maximise returns while accepting high levels of volatility

I don't care about inflation, I just want to avoid negative returns

I want my returns to keep up with inflation over the long term

I want my returns to stay ahead of inflation over the long term

Very concerned

Somewhat concerned

Only if fluctuations are large or frequent

Not concerned by any fluctuations in my account balance

5% fall

10% fall

20% fall

Even if more than a 20% fall, I wouldn't consider changing; I'd wait it out

Defensive

Your goal is to ensure the security of your investments. You're prepared for your investments to have little growth in return for the peace of mind and stability. You'll invest predominantly in defensive assets and your suggested minimum investment timeframe is 2 years.

Conservative

Your goal is to have mostly stable returns in the short and medium term. You're prepared to give up the potential for higher returns over the long term for the comfort of less volatility. You'll mostly invest in defensive assets and your recommended minimum investment timeframe is 3 years.

Moderate

Your goal is to generate wealth over the medium to long term, while having some protection from the ups and downs in the short term. Your investments will be split between growth and defensive assets to achieve a balance between growth potential and risk mitigation. Your suggested minimum investment timeframe is 5 years.

Balanced

Your goal is to produce returns which are ahead of inflation over the longer term, but you understand that the value of your investments may fall in the short term. You'll mostly invest in growth assets and your suggested minimum investment timeframe is 5 years.

Growth

Your goal is to produce strong returns which are well ahead of inflation over the long term. You understand that your investments can have large falls in the short term. You will predominantly invest in growth assets and your suggested minimum investment timeframe is 7 years.

Time to change how you invest in super?

Our range of investment options suit different risk profiles and retirement goals. Take your pick!

What is a risk profile?

A risk profile sums up how you feel about taking risks and the level of risk you're willing to take when you invest in super. It also includes how much risk you can afford to take.

Risk can cover a few things, including the possibility that your investments:

Go up and down in value
Get a negative return
Get returns that are less than you expect over a set timeframe
Underperform against an index or benchmark.

Is the risk worth the return? Knowing whether you'd prefer to get a higher return back on your super or have a lower chance of losing money is called your risk tolerance.

FAQs about your risk profile

Learn more in our podcast on how to choose your super investments.

Ready for a change?

Now you know the type of investor you are, it's time to check that your investments suit your risk profile. Get on track to reach your goals.

Risk profile: What type of investor are you?