Super investment options turned off. What does it mean

Discussion in 'Superannuation, SMSF & Personal Insurance' started by oldmanwalking, 18th Mar, 2020.

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  1. oldmanwalking

    oldmanwalking Member

    Joined:
    5th Mar, 2018
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    Hi Ive chosen 0% on all type of investment options for my super fund last year. Is this safe? Does this have any drawback/ penalty?
    Previous I saw my super fund amount was going down, less up. I was angry and turned all the options off. Since then my account has all the super i get and and no unexpected cut.

    just checking if there is a bad side to it which i dont know. Please advice

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  2. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

    Joined:
    18th Jun, 2015
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    Location:
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    This indicates your investment choice is 100% growth for the balance and all contributions and earnings. Nothing is turned off since super cannot be uninvested. You would have needed to make the choice 100% cash for capital stability.

    You should confirm with the fund. And dont suddenly change your composition without reading the fund guidance on their website and then discussing with them. Many funds have made their portfolio compositions more defensive and they are cautioning bailing to cash. This may lock in losses and mean you miss the recovery
     
    craigc likes this.