Different types of investments are broadly grouped into asset classes. These are essentially the building blocks of an investment portfolio. The main asset classes include shares (or equities), property, infrastructure, fixed interest, cash, and alternative investments.
Investments in these asset classes have different characteristics. They’re often broadly defined as being either 'growth' or 'defensive'.
Asset classes like cash and fixed interest are sometimes described as defensive investments. They carry less risk, but they also offer less potential for high returns.
Australian and overseas shares are generally described as growth investments. They tend to offer higher returns than defensive assets, especially over longer timeframes, but they come with a correspondingly higher level of risk.
Some people think of their super as a single asset, but it can potentially be invested in many different assets. Equip Super offers both diversified investment options, which invest across a number of different asset classes, and sector-specific investment options, which invest in a single asset class only.