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 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 |