The Standard Risk Measure (SRM) for each Fund is based on industry guidance to allow investors to measure investment risk in a consistent way. It helps you compare different funds with a similar level of risk. Read the industry guidance paper.
Key points:
- The value of your investments can go up and down, and so can your account balance.
- All investments carry a level of risk. The level of risk depends largely on the type of investments (known as asset classes) you’re invested in.
- We have guidelines for how we measure risk. This is called the Standard Risk Measure.
- Each Investment Fund has a Standard Risk Measure. You can find this in the Product Disclosure Statement.
- You can use the Standard Risk Measure to compare Aware Investment Funds with other funds.
- The Standard Risk Measures are estimates only and are not guaranteed. Actual outcomes may differ significantly from estimates.
- When you choose an Investment Fund make sure you’re comfortable with the risks and potential losses.
Guidelines for measuring investment risk
The Standard Risk Measure provides an estimate of how many times a fund will deliver a negative annual return in a 20-year period. It helps you to compare different investment funds with a similar risk level.
The Standard Risk Measure for each of our Investment Funds is based on two things:
- asset class risk and return expectations, and
- the Fund’s investment mix.
The table below shows the risk measures including a corresponding:
- risk band. This ranges from 1 to 7, where 1 is the lowest risk and 7 is the highest risk, and
- risk label. This ranges from Very Low to Very High.
Standard Risk Measure
Scroll table horizontally on mobile
Risk band |
Risk label |
Estimated number of negative annual returns over any 20-year period |
| 1 | Very Low | Less than 0.5 |
| 2 | Low | 0.5 to less than 1 |
| 3 | Low to Medium | 1 to less than 2 |
| 4 | Medium | 2 to less than 3 |
| 5 | Medium to High | 3 to less than 4 |
| 6 | High | 4 to less than 6 |
| 7 | Very High | 6 or greater |
What you need to know
The Standard Risk Measure can help you compare investment funds. However, it’s not a complete assessment of all forms of investment risk. For instance, it doesn’t take into account:
- how large a loss might be,
- the impact of tax (including franking credits), or
- the potential for a positive return to be less than you may require to meet your objectives.
You should make sure you’re comfortable with the risks and potential losses associated with your chosen Investment Fund(s).
What Standard Risk Measures are applied to the Investment Funds?
The Aware Investment Funds Product Disclosure Statement explains which Standard Risk Measures are applied to our Investment Funds.
We review the Standard Risk Measure of each of our Investment Funds annually, or more frequently if there is a material change.
Related information
Where to next?
Are our Investment Funds right for you?
We can help you with questions about how to get the most out of your Investment Fund account. Whatever your stage of life, we’re ready to support you to get where you want to go.
How Investment Funds work
When you invest in a Fund, your money is pooled with other investors’ money to earn you a return.
You can manage your investments online
Through your online account, you can:
- view your balance
- switch your investments
- update your contact details