Title

How Much Investment Choice is Enough for Members?

Document Type

Journal Article

Faculty

Business and Law

School

Accounting, Finance and Economics

RAS ID

4367

Comments

This article was originally published as: Gerrans, P. A., Clark-Murphy, M. C., & Speelman, C. P. (2006). How Much Investment Choice is Enough for Members?. Australian Accounting Review, 16(40), 14-22. Original article available here

Abstract

In recent years Australians have been given increased responsibility in making investment strategy decisions for their superannuation contributions. The investment choices superannuation funds typically offer include ready-made options with a strategic asset allocation or a “do-it-yourself option where the members choose their own asset allocation. This paper examines a sample of choices by members of a large industry fund which allows members any combination of six ready-made pools and eight asset classes. About one-quarter of these decisions involve choices which suggest a possibly naïve view of diversification unless members are conscious of resulting asset allocations.

 

Link to publisher version (DOI)

10.1111/j.1835-2561.2006.tb00040.x