Investing challenge

Use the investing challenge to test your knowledge of:

  • different assets from super and shares to property and ETFs
  • risk factors affecting your investments 
  • diversification and protecting your money
 
 

Benchmark assumptions

Cash benchmark

  • The Cash benchmark is based on the average of the monthly rolling 10 year compound average returns of the Bloomberg AusBond Bank Bill Total Return Index as measured over the 10 years to Oct'15
  • The reasonable range is calculated as +/- 1 standard deviation from the calculated benchmark using 10 year monthly rolling average returns over the 10 years to Oct'15. This means that historical monthly rolling 10 year average returns have fallen within this range approximately 6 out of 7 years during the last 10 years
  • This benchmark is suitable for comparison with historical 10 year average returns of cash investments such as term deposits and savings accounts
  • Accumulation indexes incorporate both capital growth and income received and reinvested over the period
  • No allowance has been made for tax or investment fees, and investments are assumed to be unleveraged
  • Past performance is not necessarily a reliable indicator of future performance
  • The current RBA cash rate shows that returns on cash are currently well below long-term averages. During periods of lower than average rates, authorised deposit-taking institutions (ADIs) are likely to offer interest rates that fall between the RBA cash rate and the benchmark rate.

Bonds benchmark

  • The Australian Bonds benchmark is based on the average of the monthly rolling 10 year compound average return of the Bloomberg AusBond Composite 0+Y Total Return Index as measured over the 10 years to Oct'15
  • The reasonable range is calculated as +/- 1 standard deviation from the calculated benchmark using 10 year monthly rolling average returns over the 10 years to Oct'15. This means that historical monthly rolling 10 year average returns have fallen within this range approximately 6 out of 7 years during the last 10 years
  • This benchmark is suitable for comparison with historical 10 year average returns of Australian Bond investments such as Australian Government and Australian corporate bonds
  • Accumulation indexes incorporate both capital growth and income received and reinvested over the period
  • No allowance has been made for tax or investment fees, and investments are assumed to be unleveraged
  • Past performance is not necessarily a reliable indicator of future performance

Property benchmark

  • The Australian Property benchmark is based on the average of the monthly rolling 10 year compound average return of the S&P/ASX 300 A-REIT Total Return Index as measured over the 10 years to Oct'15
  • The reasonable range is calculated as +/- 1 standard deviation from the calculated benchmark using 10 year monthly rolling average returns over the 10 years to Oct'15. This means that historical monthly rolling 10 year average returns have fallen within this range approximately 6 out of 7 years during the last 10 years
  • This benchmark is suitable for comparison with historical 10 year average returns of Australian listed property trusts
  • Accumulation indexes incorporate both capital growth and income received and reinvested over the period
  • No allowance has been made for tax or investment fees, and investments are assumed to be unleveraged
  • Past performance is not necessarily a reliable indicator of future performance
  • This benchmark is suitable for comparison to listed Australian property investments. Australian residential property investments are typically less volatile and returns may vary significantly from those of listed property investments

Australian shares benchmark

  • The Australian Shares benchmark is based on the average of the monthly rolling 10 year compound average return of the S&P/ASX 200 Accumulation Index as measured over the 10 years to Oct'15
  • The reasonable range is calculated as +/- 1 standard deviation from the calculated benchmark using 10 year monthly rolling average returns over the 10 years to Oct'15. This means that historical monthly rolling 10 year average returns have fallen within this range approximately 6 out of 7 years during the last 10 years
  • This benchmark is suitable for comparison with historical 10 year average returns of Australian share investments such as direct shares and managed Australian share funds
  • Accumulation indexes incorporate both capital growth and income received and reinvested over the period
  • No allowance has been made for tax or investment fees, and investments are assumed to be unleveraged
  • Past performance is not necessarily a reliable indicator of future performance

International shares benchmark

  • The International Shares benchmark is based on the average of the monthly rolling 10 year compound average return of the MSCI World (Ex Australia) Net Total Return AUD (unhedged) Index as measured over the 10 years to Oct'15
  • The reasonable range is calculated as +/- 1 standard deviation from the calculated benchmark using 10 year monthly rolling average returns over the 10 years to Oct'15. This means that historical monthly rolling 10 year average returns have fallen within this range approximately 6 out of 7 years during the last 10 years
  • This benchmark is suitable for comparison with historical 10 year average returns of international (unhedged) share investments such as direct shares with no currency hedging in place and managed international (unhedged) share funds
  • Accumulation indexes incorporate both capital growth and income received and reinvested over the period
  • No allowance has been made for tax or investment fees, and investments are assumed to be unleveraged
  • Past performance is not necessarily a reliable indicator of future performance
  • Returns are unhedged which means they are affected by fluctuations in currency markets

Related links


Last updated: 01 Feb 2016