Diversify your investments and help manage your risk

Diversify your investments and help manage your risk

One of the longest standing principles of good investment is to ensure you have a range of investments. As one of the world’s most famous investors – Warren Buffett - says ‘one should never put all one’s eggs in one basket’

Having all your money in one investment may produce great returns. But it can also mean big losses if your investment goes sour. If you have a variety of investments and one of them goes bad, the others could be stable or even increasing, which will help cushion the impact on your total portfolio. This is known as diversification.

Your financial goals are important too and diversification can help you meet them. We all have different financial goals and where you are in your life can influence these goals.

For example, during the working years many people focus on purchasing a home and building up their superannuation. But there are also areas to focus on such as buying a car or saving for a trip overseas. There are other expenses that younger people might be more focused on like getting children through school and taking the family on holidays.

Preserving your wealth can be just as important. This can also be known as preserving capital and diversification can help protect those savings.

Diversification and your super

Diversification can include investing in your home plus your super and maybe some shares as well; even an investment property.  But it can also mean choosing more than one investment option within your superannuation.

The Prime Super investment team spends a lot of time managing investment strategy for members to get the best returns and to make sure there is a range of options.

Investment options are there so members can spread their investment risk if that is appropriate to their circumstances. Prime Super has 10 investment options for members to choose from, and they can select just one or a number of them.

Alternatives: Our point of difference

To achieve the aim of having investment strategy that is measurably different, the Fund focuses in investing in alternative and direct investments such as private equity, infrastructure and property. These assets are overseen by our expert investment adviser.

Like all super funds, our investments include allocations to Australian and international shares and fixed income assets. However our higher allocation to alternative and direct investments may provide more stable and better outcome to members in certain market conditions.

Think about advice

As a Prime Super member, you have access to a range of financial advice services to help you find out more about what’s appropriate for you with your super investment. If that sounds appealing, call us on 1800 675 839. We can provide a level of advice over the phone.

But if more detailed advice is a more appropriate option we have access to financial planners and can set up a meeting for you. Importantly, the first meeting is at no additional cost.

And if you need any convincing to take note of Mr Buffett’s quote, it was estimated recently that his total worth is $96 Billion (https://www.businessinsider.com.au)