this is my first post here i have been reading some threads on here and it seems like a great forum.
i just have a question regarding my parents superannuation. they were advised by a financial planner to invest the full amount of their superannuation in a vanguard S&P 300 index fund. my question is does this not lack diversification in terms of the actual fund? i realise they will have a small amount invested in each of the top 300 aussie shares but i am wondering if vanguard was to go bust would my parents have any claim over the individual shares say bhp or whatever that make up the s&p 300 or would they have no claim?
so i guess to sum it up i am wondering if this seems like a good idea to invest the entire superannuation into the one index fund? because although the investment would be diversified in terms of the 300 individual shares, for one they are only australian shares and two it is all through vanguard so if vanguard collapsed i am not sure where they would stand?
thanks in advance for any help any of you can offer