One of the smart ways to look after your superannuation investment is to be part of an index tracking fund, like Virgin Super. Why? Well super’s a long-term investment and, put simply, index tracking is a long-term strategy. It’s designed to work with the markets over time to grow your investment as much as possible.

An index fund tracks the performance of a particular market. This is different to an active fund where investors try to outperform the market.

To give you a bit more of an insight, here’s our top three on why we choose to track the index instead of using an active fund management approach.

1. It’s an uncomplicated approach
   Many super funds invest by actively picking stocks in the hope they can outperform the market. That’s their way of attempting to up returns.
2. Less fees
   As we’re not an actively managed fund, you’re not paying for managers to do their guesswork routine. So it’s lower costs to us and less fees eating into your account over time.
3. Less risky business for you
   So members can benefit from diversification, index funds invest in a number of stocks that represent the index (like the S&P/ASX 300 Accumulation Index). Because all those eggs aren’t in the one or two big baskets, you end up reducing risk while expecting to achieve returns similar to the market.

More info

• Read the Product Disclosure Statement.
• Check out our Superannuation FAQs.