Are Shares Best For Superannuation?
June 22nd, 2009
With the global stock market melt-down of the past six months, many people’s superannuation funds have literally disappeared.
With the markets starting to pick up again, is it time to re-invest your super fund in stocks?…Some of Aust’s top brokers think so. Louise Biti, a director at Strategy Steps, says most super fund portfolios are well diversified, with about 25% in shares. She says even in a volatile market there are good buying opportunities offering long-term growth potential. Shares are also paying good levels of dividends. But all investors should be on top of their asset allocation.
Graeme Colley, a strategy manager at ING Super Concepts, says shares will always be a valid and significant proportion of a superannuation portfolio. The convenience of buying and selling shares in an accessible market is an advantage over other means of holding business assets. He says portfolio allocation should be changed according to a person’s risk profile, not just economic conditions.
Mark O’Leary, Principal of KRA Financial Group, says while some investors have lost faith in shares, they need to realise these declines are common over time, and share markets have soared above their previous highs after these events. Quality shares should always be part of your superannuation plans. You should reassess your portfolio but do not make snap decisions.
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