What else should you look at?
- Can you make additional contributions to
the fund, either by a regular savings programme and/or lump-sum
payments?
- Check the size of the fund. If you're comparing
two or three trusts, ask why one fund is bigger than another.
The bigger fund will at least offer greater economies of scale,
and may also indicate a fund's popularity.
- Because you're not making the investments
directly, review the investment statement in order to fully
understand what the fund is to be invested in. You may not be
comfortable, for instance, in a fund invested in an industry
responsible for clearing virgin forests for development.
- Some funds will offer a "free-look"
period. If you change your mind within a week or two you can
cancel the whole deal and get your money back.
Information you could read
- In the first instance, read the investment
statement, which outlines the above information (and more) for
that particular fund. Other useful documents include the prospectus,
trust deeds and any other financial statements relating to the
superannuation fund. These documents are not designed for selling
or marketing, so they may be more difficult to get hold of and
will certainly be more difficult to read and understand.
- Some Rules for a
Safe and Successful Investment
Other resources
In our savings and investments section there are a number of useful books you could consider buying or borrowing. Most
of these include some information on investing in superannuation
funds.
Review the media
in our links page; in particular newspapers such as the National
Business Review.
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