Lifecycle changes up a gear
These days, if you haven’t made a conscious decision about where your super goes, chances are it’s in a default fund, likely to be a MySuper account (with low fees) and as likely as not in a lifecycle (or lifestage) product, which is investing your super according to a typical risk profile of someone your age.
This means if you are in your 20s or 30s, you are likely to have most of your money invested in high-growth areas like Australian and international shares and less in fixed-income and cash. Conversely, if you are in your 50s, it’s likely that you will have less money in the sharemarket and more in conservative investments.
When the idea of lifecycle funds was first floated in Australia in about 2005 by the US manager Russell Investments take-up was low. For one thing, it was a new concept,
