A superannuation fund (or pension fund) is an investment that you add to regularly in order to fund your life in retirement. In Australia your ‘super’ is paid by your employer each payday.
A super fund will invest in a whole range of ‘asset classes’ on your behalf. This may include local and global shares, property, big infrastructure projects and bonds. Most of this involves investing in companies such as those listed on the stock exchange.
While its compulsory for your employer to make contributions to your super, you do have the freedom to choose which investment manager does the investing for you.
It’s worth investigating which super fund your employer is sending your payments to. If you didn’t choose your fund yourself when you started working, then you were probably signed-up to a ‘default’ fund. So, take a look to see how your money is being invested, and what fees you’re paying.