What is diversification?
Diversification is a risk strategy that lets you ride the ups and downs of investing. It reduces your exposure to risk, so your investments won’t be as affected by fluctuations in markets. 
How do you diversify?
Investment diversification can be achieved by choosing a mix of:
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asset classes (cash, fixed interest, bonds, property and shares)
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industries (e.g. finance, mining, health care)
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markets (e.g. Australia, Asia, US).
You can also invest at different times to reduce your level of risk through investment strategies, such as dollar cost averaging.
Diversification when it comes to super
Super funds employ investment managers to decide on the best investment approach for members of the super fund. They actively diversify investments within and across different asset classes.
The investment manager then buys and sells assets on behalf of super fund members with the aim of delivering the best possible investment returns.
Most super funds will allow you to choose from a range of investment options with varying levels of risk and return (such as conservative, balanced or high growth, for example).
Consolidate to diversify
You may think having your super spread across multiple super funds means you’re diversifying. However, it also means you’re paying multiple fees and your super savings are harder to keep track of.
You might want to consider consolidating your super today so you can:
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save money—one super fund means one set of fees, potentially saving you hundreds of dollars each year and thousands over a lifetime
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save time—having one super fund is easier to keep track of with less paperwork and administration
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find money you didn’t know about—you can conduct a lost super search as part of your consolidation
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simplify control of your investments—with one fund it’s easier to manage an investment strategy to meet your needs.
Before you consolidate, it’s a good idea to check if you’ll pay any exit or withdrawal fees from your existing super fund and if you have the ability to transfer any insurance held within super across.
Working out what’s right for you
Everyone’s situation is different. So you need to think about your personal situation, your investment goals and the level of risk you’re prepared to take, to ensure your investment option within your super is right for you.
Not sure what the right investment option is? Consider getting some professional advice. We can help you work out whether you need to change your investment option based on your life stage or risk tolerance for example.
Keeping track of your super
While your super fund investment managers are managing your super investments for you, it’s still a good idea to keep track of how your investments are performing.
If you’re an AMP customer, remember to log into My AMP where you access your super statements, view up-to-date unit prices in your investment portfolio summary, change the way your super is invested and much more.
If you’d like help with working out the right diversification mix for your super, please contact us on 02 9299 1500.
© AMP Life Limited. This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, AMP does not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, AMP does not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.
