What is the Best Super Investment Option Now? Top 5 Super Funds in Australia (2025)
UniSuper, Colonial First State, Australian Retirement Trust, Hostplus, and MLC Super Fund are the top Australian super funds that delivered strong returns in 2024, outperforming industry averages with diverse asset allocations and growth strategies.
UniSuper’s success comes from its balanced approach, focusing on high growth sectors like tech and renewable energy. CFS and ART do well with ethical investing, growing in AI, clean energy and sustainability.
Hostplus and MLC Super Fund are consistent long term growth with diversified portfolios, biotechnology, clean energy and green tech. They offer competitive fees and member-centric services, and responsible investing.
UniSuper: A Deep Dive into One of Australia’s Top Super Funds
UniSuper, one of Australia’s biggest super funds, has cemented its position as a top performer in 2024. With a return of 14.7% on its Balanced (default) option, the fund has beaten the industry and has delivered long term value to its members.
This article is a full breakdown of UniSuper’s 2024 performance, asset allocation, investment strategies and why it’s a great choice for Australian super investors.
Reviewing UniSuper’s 2024 Investment Results
As at June 30 2024, UniSuper’s Balanced option recorded a 9.2% return for the year, beating many of the industry. Over the decade to June 2024, the Balanced option returned 7.92% per annum, well above the industry median of 6.98%.
In addition to the Balanced option, UniSuper’s International Shares option was the top performer, returning 17.3% in the same period. This was driven by strategic investments in high performing global equities, particularly in tech and healthcare.
UniSuper’s Winning Asset Allocation
UniSuper’s diversified investment portfolio is a key to its performance. The fund balances asset classes to achieve returns while managing risk. As at mid 2024, the asset allocation was:
International Shares: 31%
Australian Shares: 28%
Cash & Fixed Interest: 26%
Infrastructure & Private Equity: 11%
Property: 4%
This shows UniSuper’s mix of high-growth and stable investments.
Why UniSuper is Top of the Market
Focused on High-Growth Sectors
UniSuper has gone big on international equities, especially in tech, renewable energy and healthcare. Investments in global giants like Apple, Microsoft and NVIDIA, and emerging companies in AI, biotechnology and fintech have delivered the results.
Low Fees and Cost-Effective Management
UniSuper has some of the lowest fees in the industry. Lower administrative and investment fees means more of the returns stay in your account, not being eroded by costs.
Ethical and Sustainable Investing
With a growing focus on ESG (Environmental, Social and Governance) investments, UniSuper has added renewable energy projects, green bonds and ethically screened equities to its portfolio. This aligns with member preferences for responsible investing and strong returns.
Member-Centric Governance and Management
UniSuper is governed by UniSuper Limited, a corporate trustee owned by 37 Australian universities. This means decisions are made in the interests of members, not shareholders.
UniSuper vs Other Top Australian Super Funds
Colonial First State beat UniSuper with a 17% return, but that’s because their approach is more aggressive and higher risk. UniSuper has delivered long term performance while balancing risk and return.
Important Considerations for UniSuper Members
Even with UniSuper’s good performance, we always need to consider the risks:
Market Volatility: International shares have grown the fund but are also volatile.
Interest Rate Changes: Fixed interest allocations may be impacted by rising interest rates.
Regulatory Changes: Australian superannuation regulations may change, affecting the fund structure and investment strategy.
What UniSuper Offers Beyond Investment Returns
UniSuper offers more than investment returns:
Flexible Investment Options: Members can choose from pre-mixed, sector-specific and sustainable investment options.
Comprehensive Insurance: Competitive life, TPD (Total and Permanent Disability) and income protection insurance is available within the fund.
Smart Retirement Solutions: The UniSuper Pension provides a seamless transition to retirement with tax-effective income streams.
The Future: UniSuper’s Growth Potential
Looking forward, several factors could impact UniSuper’s performance:
AI & Technology: With ongoing growth in AI, semiconductors and cloud computing, UniSuper’s investments in this space could grow further.
Green Investments: Increased allocations in renewable energy, carbon-neutral projects and sustainable infrastructure could boost ESG (Environmental, Social and Governance) portfolio.
Economic and Market Conditions: Global inflation rates, interest rate movements and geopolitical events may impact market stability and therefore super fund performance.
Final Thoughts: Why UniSuper is a Good Choice
With a 14.7% return in 2024, UniSuper has cemented its position as one of Australia’s top super funds. Its diversified portfolio, low fees, ethical investment strategy and strong governance make it a great choice for long-term investors.
No super fund is risk free, but UniSuper’s consistent performance and member focused approach give us confidence for those looking for a reliable high performing super fund.
As always, prospective members should consider their individual financial goals, risk tolerance and long term retirement plans before making any investment decisions. Talk to a financial advisor to get personalised advice to see if UniSuper fits with your financial strategy.
Colonial First State (CFS): A Full Review of One of Australia’s Top Super Funds
Colonial First State (CFS) is one of Australia’s leading super funds, known for its performance and member focus. In 2024 its FirstChoice Growth option returned 17%.
This article looks at CFS’s 2024 performance, investment mix and key strategies to see what makes it a great choice for Australian super investors looking for strong returns and tailored services.
Colonial First State’s 2024 Returns
As at 30 June 2024, CFS’s FirstChoice Growth option returned 17% outperformed many of its peers. Over the last 10 years it returned 8.1% p.a. versus the industry median of 6.98%.
The FirstChoice Australian Share option returned 15.6% and the Global Share option 19.4% powered by strong domestic and global market performance.
Colonial First State’s Dynamic Asset Allocation
CFS uses a strategic asset allocation model to maximize returns and manage risk. As at mid 2024 the portfolio was 35% international shares, 30% Australian shares and 20% fixed interest and cash.
10% was allocated to property and infrastructure and 5% to alternative investments. This diversified approach gives a balance of growth and stability across market cycles.
Key Drivers of Colonial First State’s Performance
Focus on High Growth Global Markets
CFS invests in high growth sectors such as artificial intelligence, cybersecurity and sustainable energy. Holdings in companies like Tesla, Alphabet and Moderna were big contributors to its returns.
Low Cost Fee Structure
CFS has a competitive fee structure so investment returns are maximised for members. By managing costs and being transparent, the fund delivers better net returns for investors.
Strong Ethical and Sustainable Investing Strategy
CFS is increasing its focus on responsible investing and has increased its allocation to ESG assets including renewable infrastructure and socially responsible equities. These assets meet modern investor demand for sustainable growth.
Member Focused Governance
CFS puts members first with tailored investment solutions, strong advisory services and a simple digital platform. This lifts investor engagement and long term wealth accumulation.
Colonial First State vs. Other Leading Super Funds
UniSuper returned 14.7% in 2024 but CFS’s 17% return shows it can take advantage of opportunities. But this higher return comes with more market exposure so suitable for investors with higher risk tolerance.
Critical Considerations for Colonial First State Members
Despite CFS’s great track record, there are risks:
Market Volatility: Heavy equity exposure can cause short term fluctuations and impact stability of investments and overall portfolio performance.
Interest Rate Sensitivity: Fixed interest allocations are sensitive to interest rate changes which can impact income and returns.
Regulatory Changes: Changes to Australian superannuation policies can reshape the fund structure and asset strategy and impact investment approach and outcomes.
Beyond Returns: What Else Colonial First State Offers
CFS offers more than just great returns:
Investment Options: Members can choose from diversified, sector specific and ethical investment options to suit their preferences.
Insurance: Life, TPD and income protection insurance at competitive rates to ensure members are fully covered.
Retirement Services: CFS offers pension solutions to provide tax effective income streams to help retirees manage their needs.
Future Pros: What’s in Store for Colonial First State
Several factors can influence CFS’s success:
Technology: Further advancements in AI, digital finance and biotech can drive portfolio gains.
Sustainable Investing: Increased funding for clean energy and carbon neutral projects can boost ESG.
Macroeconomic Trends: Inflation rates, interest rate moves and geopolitical events can impact performance.
Bottom Line: Why Colonial First State is a Strong Player
CFS returned 17% in 2024 showing it can deliver high returns through smart asset allocation and innovative investing. The diversified portfolio is geared for long term growth.
CFS’s competitive fees, sustainability focus and strong governance make it a good choice for long term investors looking for reliable performance. The fund is prioritising both growth and stability in its strategies.
All super funds have risks but CFS’s investment approach gives investors confidence. Members should assess their goals and consult financial advisors to see if CFS aligns with their retirement goals.
Australian Retirement Trust (ART): A Deep Dive into a Top Super Fund in Australia
Australian Retirement Trust (ART) is one of Australia’s best superannuation funds, known for its strong performance and member focused services. In 2024 its diversified options performed well, cementing ART’s reputation as the go to choice for Australians looking for long term financial security.
This article takes a close look at ART’s 2024 performance, investment strategy and key initiatives to see what makes it a great super fund for investors who want consistent returns and tailored retirement solutions.
Australian Retirement Trust’s 2024 Investment Performance
As at 30 June 2024 ART’s Balanced Growth option returned 16.2% compared to the industry median of 9.3%. Over 10 years the Balanced Growth option has returned 7.9% per annum.
The Australian Shares option returned 14.5% driven by strong domestic market performance and well chosen stocks. The Global Shares option outperformed this returning 17.8% with technology, healthcare and green energy being key contributors.
Australian Retirement Trust’s Asset Allocation Strategy
ART has a sophisticated asset allocation model to balance growth with risk management. As at 30 June 2024 the portfolio was 40% international shares, 25% Australian shares and 15% fixed income and cash.
Also 10% property and infrastructure and 5% alternative assets to diversify the portfolio. This gives ART the ability to deliver long term growth while being stable through different market conditions.
What Drives Australian Retirement Trust’s Performance
Future Focused Industries
ART focuses on high growth sectors like clean energy, artificial intelligence and healthcare. The trust has investments in companies like Atlassian, CSL and NextEra Energy which have delivered strong returns.
Cost Efficiency
ART is committed to minimising fees to maximise returns for members. By having transparent fee structures and leveraging economies of scale ART delivers better member outcomes and more of the returns stay in members’ pockets.
Ethical and Sustainable Investing
ART uses responsible investment strategies by embedding environmental, social and governance (ESG) principles. The portfolio has renewable energy infrastructure and socially responsible shares to meet the increasing demand for sustainable investments.
Member First
ART’s governance model is member focused with tailored financial solutions, personal advice and user friendly digital tools. This member first approach encourages member engagement and helps build long term wealth for ART members.
Australian Retirement Trust vs. Other Leading Super Funds
Aware Super got 13.5% in 2024 but ART got 16.2% – that’s what happens when you can capitalise on multiple market opportunities. ART’s balanced exposure is for moderate to high risk portfolios.
Key Considerations for Australian Retirement Trust Members
Despite the great result, here are some things to consider:
Market Volatility: Equity heavy exposure can be short term volatile and affect portfolio stability and performance during market crashes.
Interest Rate Risk: Fixed income and cash allocations can be impacted by changing interest rates.
Regulatory Changes: Future super changes can impact ART’s investment strategy and fund performance.
Beyond Returns: More of what Australian Retirement Trust offers
ART offers more than just good returns:
Multiple Investment Options: ART has a wide range of diversified investment options, including sector specific and ESG funds to suit your preferences.
Comprehensive Insurance: ART members get full range of insurance products including life, TPD and income protection insurance at competitive rates.
Personalised Retirement Planning: ART has retirement strategies to optimise income streams for members in retirement, to help you get the most out of tax.
Future Outlook: Australian Retirement Trust’s Growth
Some things will continue to drive ART’s success:
Technology: Progress in areas like AI, renewable energy and digital infrastructure will unlock new investment opportunities and drive portfolio growth.
ESG Investment: ART’s increasing focus on renewable energy and sustainable projects will boost its ESG score and attract responsible investors.
Macroeconomic Factors: Inflation, interest rates and political shifts will impact ART’s performance and portfolio decisions.
Conclusion: Why Australian Retirement Trust is for long term investors
Australian Retirement Trust got 16.2% in 2024 – that’s what consistent performance looks like. ART’s balanced approach will deliver long term growth through diversification and forward thinking.
ART’s diversified portfolio and member focused services means strong growth for long term investors. The fund prioritises both ethical and financial outcomes for members.
Low fees, ethical and great governance – ART is a good choice for building wealth. ART’s investment approach lets you reach your dream retirement, minus the risks.
Hostplus: A Close Up on Australia’s Top Super Fund
Hostplus is one of Australia’s leading super funds, renowned for its consistency and member focused services and investment solutions. In 2024 their Balanced option returned 13.5%.
This article reviews Hostplus’s 2024 performance, investment strategy and key features to help you make sense of why it stands out from the rest of the super funds for Australians looking for strong growth and thoughtful financial planning.
Hostplus 2024 Investment Returns
As of June 30 2024 the Balanced option returned 13.5% beating many industry averages. Over the last 10 years it returned 7.9% per annum beating the industry median of 6.98%.
Along with the Balanced option the Australian Shares option returned 15% driven by strong domestic market performance. The International Shares option performed very well returning 18.3% driven by technology, healthcare and sustainable energy.
Hostplus’s Tactical Asset Allocation
Hostplus uses a dynamic asset allocation strategy to maximise returns and minimise risk. As of mid 2024 the portfolio was 30% Australian shares, 40% international shares and 15% fixed interest and cash.
10% was allocated to property and infrastructure and 5% to alternative investments. This diversified approach helps balance risk with growth and ensures stability through market ups and downs.
Why Hostplus performed well
Growth Sectors
Hostplus focuses on high growth sectors such as biotechnology, clean energy and digital transformation. Investments in Atlassian, CSL and NextEra Energy contributed significantly to the fund’s returns.
Low Fees
By keeping fees competitive Hostplus maximises net returns for members. The fund’s efficient structure and transparency means more value for investors and lower operational costs.
Sustainable Investing
Hostplus is committed to responsible investing and integrates ESG into its strategy. The fund invests in renewable energy, sustainable agriculture and ethical companies aligning with investors growing desire for environmental and social responsibility.
Member-Focused Governance and Services
Hostplus puts members first with bespoke investment solutions, advisory services and a user-friendly online platform. This is to help long term wealth creation, informed decisions and guidance at every stage of the member journey.
Hostplus vs Other Leading Super Funds
Hostplus returned 13.5% in 2024, slightly below AustralianSuper’s 14.2%. But Hostplus’s diversified risk approach and investment options for conservative and growth focused members delivered solid results.
With a focus on balancing risk and return, Hostplus is still a good option for those looking for steady, reliable growth. Its performance shows a commitment to providing long term returns while managing risk.
Important Considerations for Hostplus Members
Even with its good performance, members should consider:
Market Sensitivity: Hostplus’s high equity exposure means the portfolio may be volatile in the short term, especially in uncertain economic conditions or during market downturns.
Interest Rate Fluctuations: The fixed interest holdings are exposed to interest rate changes which can affect income returns, especially when rates rise.
Regulatory Changes: Changes in superannuation policies and government regulations can impact Hostplus’s investment strategy and portfolio composition and returns.
Beyond Returns: What Else Hostplus Offers
Hostplus offers more than just good returns:
Multiple Investment Options: Members can choose from a range of investment options to suit their risk profile, including balanced, ethical and sector specific portfolios.
Competitive Insurance Options: Hostplus offers competitive insurance coverage including life, TPD (Total Permanent Disablement) and income protection insurance to cover members.
Retirement Planning: With its comprehensive retirement solutions, Hostplus helps members get the most out of their super for retirement by offering tax effective income strategies and financial guidance for transitioning to retirement.
Hostplus Future: Growth and Sustainability Outlook
Several things will drive Hostplus’s growth:
Technology: Advances in AI, digital finance and renewable energy will present opportunities for long term returns.
Sustainable Investments: Hostplus will increase its focus on low carbon and sustainable projects to meet the growing demand for responsible investment options.
Global Macro: Interest rates, inflation and geopolitical events will impact the portfolio, so you need an investment strategy that can adapt.
Verdict: Why Hostplus is a Good Super Fund
Hostplus returned 13.5% in 2024, it can deliver steady growth through investment and risk management. Its diversified approach means long term financial security for members.
Low fees, sustainable investing and member focused governance makes Hostplus a solid super option. For steady growth, it’s a good one in the Australian super landscape.
MLC Super Fund: A Review of a Well Known Australian Superannuation Provider
MLC Super Fund is a well known superannuation provider in Australia, with strong investment strategies and member focused services. In 2024 their flagship Balanced Growth Fund returned 16%.
This article reviews MLC Super Fund’s 2024 performance, asset allocation and unique strategies, so you can see why it’s an option for Australian investors looking for a balance of growth and stability in their super.
MLC Super Fund’s 2024 Returns
As at June 30 2024 MLC’s Balanced Growth Fund returned 16%, beating many of its peers. Over the last 5 years it’s returned 7.2% p.a. vs the industry median of 6.5%.
Their Australian Share Fund returned 14.2% and the Global Shares Fund 19.6% with strong performance in the local market and emerging markets and tech and renewable energy stocks.
MLC Super Fund’s Asset Allocation Approach
MLC takes a balanced asset allocation approach to generate sustainable returns while managing risk. As at mid 2024 the fund’s portfolio was 40% Australian shares, 30% international shares and 15% fixed income.
The remaining 15% was split between property, infrastructure and alternative assets. This diversified approach means the portfolio can adapt to market ups and downs and capture growth opportunities.
What’s Driving MLC Super Fund’s Success
Focus on High Growth Global Sectors
MLC invests in emerging industries like green technology, cloud computing and biotechnology. Key holdings in companies like Apple, Adobe and NextEra Energy have been key to the fund’s returns.
Streamlined Fees
MLC Super Fund has a transparent and cost effective fee structure so investors get to keep more of their returns. They’re committed to minimising operational costs to deliver value to members in the long term.
Ethical Investment
MLC has increased its allocation to environmentally and socially responsible assets. Investments in renewable energy infrastructure and sustainable development projects meet the growing demand for ethical and ESG investment options.
Member First Governance
MLC puts member engagement at the forefront, with personalised investment solutions, comprehensive financial advice and a user friendly digital interface to help members take control of their super.
MLC Super vs. Other Super Funds
Compared to industry peers like Rest Super which returned 13.5% in 2024, MLC’s 16% return shows it can seize the opportunities. However MLC’s exposure to shares means its performance will be more volatile, so it’s best for risk tolerant members.
Things to Consider with MLC Super Fund
While MLC is performing well, members should consider:
Market Volatility: High share exposure can mean big short term fluctuations especially during downturns.
Interest Rates: The fixed income part of the portfolio could be impacted by rising interest rates and reduce returns from those investments.
Regulatory Changes: Changes to superannuation policies or tax laws can impact MLC’s investment strategy and fund performance.
More to MLC Super Fund than just Returns
MLC Super Fund offers more than great returns, members get:
Tailored Investment Options: Members have access to a range of investment options from growth focused to ethical and socially responsible funds so members can choose what suits them.
Comprehensive Insurance Options: The fund offers life, total and permanent disability (TPD) and income protection insurance so members and their families are financially protected.
Retirement Solutions: MLC offers pension and drawdown options to give members a tax effective income stream in retirement and ensure their financial needs are met in retirement.
MLC Super Fund’s Future
Several things will impact MLC Super Fund’s future performance and growth:
Technology: Investments in AI and clean energy will boost long term returns.
Sustainable Investments: MLC’s increasing allocation to renewable energy and ESG focused projects will enhance the fund’s reputation for responsible investing.
Economic Conditions: Inflation rates, interest rate changes and global economic trends will influence returns.
In summary: Why MLC Super Fund is a good bet for Australian Investors
MLC Super Fund has consistently strong performance with diversification, competitive fees and a sustainable focus. This is why it’s a long term choice for growth.
The member’s first approach and personalisation reflects the fund’s commitment to service. Strong governance means MLC Super Fund is a player in the Australian superannuation market.
All super funds carry risk, but MLC’s active approach to investing makes it a good option. The balanced approach provides stability and growth potential for most retirement goals.
FAQs
What are the different types of superannuation investment options?
Superannuation investment options include growth, balanced, conservative, sector-specific, ethical and lifecycle funds. Each option is different in terms of risk, return and asset allocation and offers different strategies to achieve your retirement goals.
Growth funds focus on high return assets like shares while conservative funds focus on stability with fixed interest investments. Lifecycle funds adjust their asset allocation based on your age, and automatically becomes more conservative as you approach retirement.
How do I choose the best super investment for my retirement goals?
To choose the best option consider your risk tolerance, time horizon and financial goals. Growth funds are suitable for younger investors with longer timeframes, while conservative funds are better for those nearing retirement.
Assess how much risk you are willing to take. Younger investors can generally afford more risk, while those closer to retirement may opt for safer, more stable investment options to protect their balance.
What is the difference between growth, balanced and conservative super funds?
Growth funds aim for higher returns with a higher proportion invested in shares. Balanced funds have a mix of growth and defensive assets and provide moderate risk and returns.
Conservative funds focus on preserving capital with more allocation in low risk assets like bonds and cash. Growth funds offer more long term potential while balanced and conservative funds focus on stability and less risk.
How have different super investment options performed historically?
Growth funds generally outperform over the long term, delivering higher returns but with more short term volatility. Balanced funds provide steady performance while conservative funds have lower but more predictable returns.
Performance varies by market conditions and the fund’s asset allocation. Growth funds often perform better during bull markets while conservative funds tend to outperform during downturns due to lower exposure to riskier assets.
What fees are associated with different super investment options?
Fees vary by fund type, most include administration fees, investment fees and performance fees. Growth funds have higher fees due to more active management and higher asset turnover.
Conservative and balanced funds have lower fees as they are more passive. Make sure to review all fees associated with your super fund as they can impact long term growth and returns.
How does ethical or sustainable investing impact superannuation returns?
Ethical and sustainable investing considers environmental, social and governance (ESG) factors. These investments have slightly higher fees but are for those who want their money to align with their values.
ESG focused funds may underperform in some market conditions but many studies show long term returns are comparable. Ethical funds can also be less volatile and more resilient, with balanced growth and positive social impact.
Can I change my super investment options, and if so, how often?
Yes, you can change your super investment options at any time. Most funds allow members to adjust their portfolio online or through customer service, usually with no restrictions on how often changes are made.
But frequent switching will incur extra fees or taxes. Make sure to consider the impact of any changes on your long term plan and don’t make hasty decisions based on short term market movements.
What are the risks of high growth super investment options?
High growth super investment options are riskier because of their high equity and other volatile components. They may offer higher returns but are more market volatile.
Risk factors are economic downturns, market crashes and geopolitical instability. Growth funds can deliver long term results but short term volatility can result in big losses if markets turn against you.
How does my age affect the choice of super investment options?
As you get older your super investment strategy should become more conservative. Younger investors can take on more risk as they have time to recover from market volatility.
Older investors, especially those approaching retirement, should opt for less risky options. This will protect their accumulated wealth from short term market movements and ensure a smoother transition to retirement with more financial security.
Are there tax implications when switching super investment options?
Switching super investment options don’t trigger tax if the funds stay within the same super account. But check with your super fund for specifics.
Tax can arise if you switch to a new super account or withdraw funds and trigger capital gains tax. Make sure you understand the tax implications before making any changes especially if you’re switching frequently.
How do lifecycle super funds adjust my investment strategy over time?
Lifecycle funds adjust their asset allocation based on your age and retirement date. As you approach retirement the fund will gradually reduce risk by shifting more money into conservative assets.
These funds are designed to match your changing risk tolerance. They’re a hands-off approach and perfect for those who want a more passive and age appropriate investment strategy.
What’s the role of index funds in superannuation investment options?
Index funds track the performance of a specific market index like the ASX 200. They’re low cost options for super investors looking for broad market exposure and long term growth.
They’re diversified and passive so lower fees than active funds. Perfect for low hassle low cost investments with good long term results.
How do super funds invest in international markets and what are the benefits?
Super funds invest in international markets by buying shares, bonds and other assets from foreign companies or countries. This broadens diversification and spreads risk across global economies.
International exposure lets funds access growth in emerging and developed markets. It also reduces reliance on Australia’s domestic market and provides a hedge against local downturns.
What affect super investment returns?
Economic factors like inflation, interest rates and unemployment can impact super investment returns. Inflation can erode purchasing power and high interest rates can affect bond prices and growth assets.
Conversely strong economic growth can mean higher corporate profits and market expansion and higher investment returns. Funds that balance exposure to multiple asset classes can mitigate some of the risks of economic volatility.
How can I check my current super investment option?
You can check your super investment option by reviewing quarterly or annual statements, comparing to benchmarks and assessing the fund’s long term performance.
You may also review the portfolio’s asset allocation and management fees. Is the performance aligned to your financial goals and risk tolerance. Independent financial advice can help with deeper analysis of your fund’s performance.
What are the benefits of diversifying my super?
Diversification spreads risk by investing in different asset classes such as shares, property and bonds. This reduces the risk of significant losses if one asset class does poorly.
It also gives exposure to many investment opportunities and smooths out returns over time. A well diversified portfolio can add stability and protect your super balance from market fluctuations.
How do fees and charges impact my super balance over time?
Fees and charges (administration, investment and performance) can erode your super balance over time. Even small fees can compound and reduce your returns.
Choosing funds with lower fees is key to maximising your retirement savings. Over the long term excessive fees can erode returns so it’s important to compare fees across different super funds to optimise investment growth.
What are the benefits of a self managed super fund (SMSF) for my investments?
An SMSF gives you control over investment choices and allows you to tailor your portfolio to your needs. It also gives you flexibility in managing tax and retirement strategies.
But SMSFs require more time, expertise and compliance and the cost to run an SMSF is higher than a traditional super fund so more suited to larger balances.
How do I compare super funds to find the best one for me?
Compare super funds by looking at fees, performance, investment options and customer service. Funds with a good history and fees that suit your investment goals.
Consider the fund’s asset allocation, ethical investment options and flexibility to manage your account. A fund that aligns with your retirement goals and risk tolerance is key to long term success.
What resources can help me make informed decisions about my super?
Resources like MoneySmart, super comparison tools and financial advisers can help. Funds often have online calculators and educational content to help you understand the investment options.
Super fund annual reports, performance reviews and independent ratings from SuperRatings can also help you compare funds. These tools help you make an informed decision based on your individual circumstances.
Originally Published: https://www.starinvestment.com.au/what-is-the-best-super-investment-option-now/
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