Basically haven't picked one before, using the 'canstar' website and searching for 18-29 year old with 0-50k funds it gave me ANZ Smart Choice as the best option,
https://www.canstar.com.au/compare/superannuation/results;ag…
Should I look just go for this or should I inquire about whether my employer has a fund and if I can go with that?
I believe UniSuper and Telstra are both specific to your line of work and sector.
They are not open to the public hence CANSTAR will not show them on their website.
UniSuper is the only super fund dedicated to people who work (or have worked) in Australia’s university, research and higher education sector.
TelstraSuper's open to:
Agree. Many industry funds are closed funds. The OP has not provided any information on which industry or employer he is working at; so, what I wanted to highlight is that he may be eligible for an industry fund that would not be shown on Canstar that could be much better for him.
As a financial adviser, the best and cheapest one right now (including insurance premiums) is kinetic super and HostPlus. They also have a good historic returns.
Check them out
As you are a financial adviser, I would be very wary of giving financial advice in a public forum
the financial adviser that didnt get car insurance and got into an accident
yeh nah ay
Believe it or not, i was actually asking for a friend.
Unless you work for ANZ (or one of the big banks) I wouldn't keep my super with them.
You're young and have a small super balance, so find something with low fees and a good Growth profile option. Industry funds are usually your safest bet to satisfy those criteria
I do have some exposure to these funds. Your employers choice of fund is your first bet as the employer may sometimes pay for insurance premiums such as TPD, salary continuance or reduced admin fees.
If not, pick up the top 5 funds from the last 5 years, REST, Unisuper, Hostplus, Australian Super springs to my mind for their balanced funds and mostly they are also Industry funds.
Now check their ICR's (indirect cost ratio), based on the new regulations from Sept 17, all funds have to report the ICR on both direct and indirect expenses on the fund, this will tell you as to how much you pay in fees and costs for every $1 you invest. This is one way to go.
Hostplus best super fund
But anything industry super is fine do not go retail!
An industry fund is your best option, and as you are young and can absorb more risk, consider a growth fund strategy with predominantly Australian and International share exposure. Plenty of time to switch to a balanced fund closer to retirement.
Remember that this is your money and you have a certain amount of control over it within the fund. Don't just set and forget.
Compound interest is the 8th wonder of the world.
Funds like Sunsuper, QSuper, Australian Super are not-for-profit and allow people to become members even if you're not in their original industry.
Please, avoid the big banks, and any "for profit" funds offered by commercials. e.g. Colonial, AMP etc. Why? Their fees are usually higher, and they quite often use the same wholesale fund managers as the non-for-profits, if they don't have their own portfolio management/trading team in house.
You might like to check …
https://www.superratings.com.au/top-tens
For someone in your age group, the best place to be is where you get the highest returns, for the lowest fees :) Good advice above from other OBers.
Also; look into income and life insurance offered by your fund, too.
https://www.superguide.com.au/boost-your-superannuation/what…
* note: past performance is not an indicator of future performance.
Regarding QStupid - Caveat Emptor.
Thanks for all the feedback, the fund at the top of my list is probably Australian Super; I couldn't see the industry fund for a security officer. Curious how easy it is to swap funds if I end up not liking the one I go with, will I have to pay exit fees or anything of the like?
For a low balance, consider Wealth Focus Investment Advantage Wholesale Super. Unlike the name suggests, there isn't any significant minimum investment. The main feature is that there are no monthly fixed admin fees. For example, if you only have 20000 in super, a 100 fee is equal to 0.5% a year. You can choose the vanguard australia shares index, with a 0.55% net fee and no other fees, which makes it quite reasonable.
https://www.perpetual.com.au/~/media/Perpetual/PDF/RESOURCES…
What do you do for work? If you're under an EBA chances are you won't be able to choose your super. Unions like the SDA strike deals with Coles and Woolies etc to force their employees into the superfund the SDA run in exchange for agreements which leave employees worse off than under the award.
Past performances do not always indicate future performance so focus on what you can control, fees. Hostplus Indexed Balanced option had the lowest fees for a growth fund being $78ps plus 0.015% of your super balance.
Check if your employer already has a fund.
Check if you are eligible for an industry fund… from looking at the Canstar site, many of the industry funds are not listed. I have money in Telstra Super, which is not listed - nor is Unisuper listed - which won fund of the year for the last 2-3 years (depending on who you talk to).
Key thing, is understand how the fund charges fees. Retail fund fees can be significantly higher than industry fund fees which will eat into your super.