Category: Future Proof
Chapter Select
Sub category: Superannuation
14 February 2016

4 things to consider before buying shares with your super

Investing in shares could give you greater control of your retirement planning.

Historically, Australians seeking greater control of their super have often turned to Self Managed Super Funds (SMSFs) as a means to invest in shares. A study of the investment allocation of Self-Managed Super Funds found that 32% of assets invested in SMSFs are in listed shares (sourced from the ATO self-managed super fund statistical report – June 2015).

However, now that many super funds offer real time share trading, investing your super in shares is now more widely available – allowing you to avoid the compliance and administrative challenges often associated with managing an SMSF.

While investing in shares directly may help you take greater control of your super, take some time to consider the following before you go ahead:

1. The types of investments available

There are many types of investments including Shares, Exchange Traded Funds (ETFs) and Listed Investment Companies (LICs).

Investing in Shares, ETFs and LICs can be a great way for people to take control of their investment strategy within super, by allowing customers a hands on approach to selecting shares in Australian securities and international shares and other types of asset classes such as gold through ETFs and LICs.

Each investment option is unique so do your research before deciding which suits you.

2. The level of flexibility and control that suits you

Depending on your risk profile and stage in life, taking a more ‘hands on’ approach with your investments could deliver valuable rewards down the track.

Investing part of your super in shares offer you greater control over your investments by allowing you to track their performance and trade directly. You can also develop investment strategies that allow you to generate extra income through dividends, grow your capital and focus on specific sectors and markets.

3. Risk

Before embarking on share trading, consider your attitude to risk. While shares, ETFs and LICs historically deliver higher returns over the long term than cash for example, they also carry a higher level of volatility and risk of loss over the short term. You should also be aware of the cost of share trading, liquidity of the investment you make, the consequences of trading too often, too little diversification and the risk of investing in response to your emotions.

You can consider diversifying your investments across a range of securities, such as managed investments, term deposits and shares to help reduce the risk of impacting your investments significantly in the short term compared to investing purely in shares.

4.  Any assistance you may need

If you’re not sure which approach is best for you, take a look at the investment information offered by your super fund to see what options may best suit your circumstances.

For tailored solutions relevant to your unique circumstances, consider speaking to an independent financial adviser.

The information is current as at publication. Any advice on this website does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. Deposit products, savings products, credit card and home loan products are issued by ING, a business name of ING Bank (Australia) Limited ABN 24 000 893 292, AFSL and Australian Credit Licence 229823. ING Living Super (which is part of the ING Superannuation Fund ABN 13 355 603 448) is issued by Diversa Trustees Limited ABN 49 006 421 638, AFSL 235153 RSE L0000635. The insurance cover offered by ING Living Super is provided by Metlife Insurance Limited ABN 75 004 274 882, AFSL 238096. ING Insurance is issued by Auto & General Insurance Company Limited (AGIC) ABN 42 111 586 353 AFSL Licence No 285571 as insurer. It is distributed by Auto & General Services Pty Ltd (AGS) ABN 61 003 617 909 AFSL 241411 and by ING as an Authorised Representative AR 1247634 of AGS. All applications for credit are subject to ING's credit approval criteria, and fees and charges apply. You should consider the relevant Product Disclosure Statement, Terms and Conditions, Fees and Limits Schedule, Financial Services Guide, Key Facts Sheet and Credit Guide available at when deciding whether to acquire, or to continue to hold, a product. Before interacting with us via our social media platforms, please take a minute to familiarise yourself with our Social Media User Terms

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