Standard Risk Measure

The Standard Risk Measure (SRM) tells you the level of risk in a particular superannuation investment option. It’s designed to give you a better understanding of the investment risk in the option you’ve chosen.

The SRM shows an investment option’s ‘risk band’, ‘risk label’ and ‘expected frequency of negative returns’ (the expected number of negative annual returns over any 20-year period).The table below lists the seven SRM levels applied to your available investment options:

Risk bandRisk labelEstimated number of negative annual returns over any 20-year period
1Very lowLess than 0.5
2Low0.5 to less than 1
3Low to medium1 to less than 2
4Medium2 to less than 3
5Medium to high3 to less than 4
6High4 to less than 6
7Very high6 or greater