The balanced option is Australia’s most popular superannuation investment option — most MySuper defaults are balanced or growth options. It holds a mix of growth and defensive assets, targeting moderate long-term returns with moderate volatility.
What Is a Balanced Super Option?
A balanced option typically holds approximately 60–70% growth assets and 30–40% defensive assets:
| Asset Class | Typical Allocation |
|---|---|
| Australian shares | 20–30% |
| International shares | 20–30% |
| Fixed interest (bonds) | 15–25% |
| Property and infrastructure | 10–15% |
| Cash | 5–10% |
| Alternatives (private equity, hedge funds) | 0–10% |
Exact allocations vary significantly between funds — always check your fund’s product disclosure statement (PDS) for the actual breakdown.
Historical Returns — Balanced Options
Based on APRA data and industry fund disclosures:
| Timeframe | Approximate Annual Return |
|---|---|
| 1-year | Varies significantly (can range from −10% to +20%) |
| 5-year average | 6–8% per year |
| 10-year average | 7–9% per year |
The Mercer and Chant West surveys consistently show median balanced fund returns of around 7–8% per year over 10 years for major industry funds.
Past performance is not a reliable indicator of future performance.
The Standard Risk Measure
APRA requires funds to disclose a Standard Risk Measure (SRM) for each investment option — the estimated number of years out of 20 that the option may deliver a negative return:
| Option | Typical SRM (negative years in 20) |
|---|---|
| Cash | 0 |
| Conservative | 0.5–1 |
| Balanced | 2–3 |
| Growth | 3–4 |
| High Growth | 4–6 |
A balanced option may produce a negative return roughly 2–3 years out of every 20 — a meaningful but manageable level of short-term volatility for most members.
Who Typically Chooses Balanced?
A balanced option is commonly suited to:
- Mid-career workers (roughly 40–55) who want moderate growth with less volatility than a pure growth option
- Members within 5–10 years of retirement who are beginning to de-risk but still need real growth to keep pace with inflation
- Risk-moderate members who are comfortable with some fluctuation but don’t want the sharper swings of a growth option
It is the default for most Australians in a MySuper product.
Balanced vs Growth — Which Is Better?
| Feature | Balanced | Growth |
|---|---|---|
| Growth assets | ~60–70% | ~70–85% |
| Expected return (10-year) | 7–8% | 8–9% |
| Volatility | Moderate | Higher |
| Negative return frequency | ~2–3/20 years | ~3–4/20 years |
Over very long horizons (20+ years), a growth option typically outperforms a balanced option — the additional volatility is rewarded. Over shorter horizons or near retirement, the lower volatility of balanced may be preferable.
See Growth Super Fund Option for a full comparison.
How to Check If You’re in a Balanced Option
- Log in to your super fund’s portal or app
- Go to “Investment options” or “My investments”
- Check the name and asset allocation of your current option
- Compare the growth/defensive split against the table above
If you joined without making a choice, you are likely in the fund’s default MySuper product — which is usually a balanced or lifecycle option.
For further reading: Super Fund Investment Options Explained, Growth Super Fund Option, How to Change Your Super Investment Option. For advice tailored to your situation, speak with a licensed financial adviser through MoneySmart.