How does one judge a super fund? Is it based on both fees and returns or just returns? Which is one that has consistently outperformed and would be worthy of a switch? At present, I'm with Australian Super, and the returns haven't been too bad but I think there are some hidden gems out there.
A Super Fund with Consistent Returns
MR-AM on 02/12/2019 - 08:10
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What are your thoughts on all the other times this question has been asked and answered, or does the answer change with every change in the stock market?
Australian Super is consistently in the top performers of the major funds, with very competitive fees.
Super is a long term game, and IMO what you need is consistency of returns and AusSuper has a proven track record of that. Be careful shopping around for short term gains that may give you a better return overall over the next 20-40 years. "The grass is always greener…."
Never hurts to shop around, but be careful of always chasing the short term, especially for a long term investment like Super.
I'm also with Australian Super, but have found that they charge stupendous amounts for share trading. At the end of the day it all adds up. I've been happy with their returns but have moved my money from one of their options to doing my own trading via their trading platform (big mistake as i thought that i was going to be the next Warren Buffet) Now I'm thinking of moving my money back towards one their options as I've incurred massive losses this year in a market which up till now has delivered close to 7.5% in the first 5 months of the FY.
Oh dear.
Sounds like moving funds is not what you need, it's simply to take your finger off the mouse.
I didn't know you could do this within your Super Fund. (will investigate more)
It sounds like insanity.
Super is my set and forget "safe" investment. I do my share trading outside of that environment.
edit: /looks at AUS Super…
$395 pa portfolio management fee regardless of account balance and 0.12% pa of account balance. The management fee is fairly hefty if you have a low balance but it's stated clearly.
$30 brokerage on a $10k trade is not great but ~$20 is about average so it isn't a rip off.
Maybe the biggest issue is that you have a small balance and using tools designed for large balance accounts
its called membersdirect, the trades go through UBS (I think) You can only trade ASX300 stocks and a selection of ETF's
I'm also with Aust Super. Excellent returns…the trick is to log into your account and shift your investments around so they're invested in higher performing sub-funds or categories.
If you just stick with "Balanced Growth" you may not get as good returns than if you put a proportion into International Shares, Aust Shares, and the other options they have.Aus super is OK. I opted for low fees in my super as within the Super asset class industry that is ultimately what I can control and as previously stated Super is a long term game, hence lower fees is better overall. Past performance ins't an indicator of future performance. However it can help a bit. BTW I switched from Aus Super this year :)
It's less a case of who you are invested in, as what you are invested in.
To take two reasonable end points (without being totally extreme about it), basically every major super fund out there will offer you a range of options.
At the low end of the risk spectrum are cash/fixed interest options that will likely yield low, but very consistent returns.
At the high end of the risk spectrum are various equity options that over the long run will likely yield superior returns, but with significant variability.
The result of your investing will be based on (simplistically) which of these options you choose, not which super fund happens to have supplied them to you.
Here's one way of judging a super fund:
https://www.canstar.com.au/star-rating-reports/superannuatio…Australian super is a good, low fee fund and a top 5 performer over the past 7 years.
if you think the returns are low then you should revue the insurnce and decide if you really need it.
You should also revue what investment strategy you have your money in (and the fees associated with that strategy).
NB: You can spread your investment over several investment choices.
eg. I am in First State Super and have 20% Growth; 20% Diversified Socially Responsible; 25% Australian Equities and 35% International Equities. This works out similar (less bonds/cash) to investing in the High Growth account but significantly less fees.One hidden gem is Nucleus Wealth super and there based in Melbourne. They will put together your own portfolio of shares, bonds and cash based on your risk , ethics and so on. Fees are competitive . I put my super with them and very happy .The best thing is your not in a pool of millions .
Check them out .
I'm all in with Australian Super 'High Growth' pre-mixed option - A great set & forget option! I would have no hesitation with recommending them.
Im with MTAA and same as you, ive been happy enough, they seem to be good.
But in such a variable game, who knows whats best.
If you took the time to look into it, I guess there would some funds that are clear losers or winners.
Its working out which one of the ones that are doing ok to better is the hardest part.
And for a someone like me who knows nothing about it, which lets face it, may well be most of the population, its a difficult task.
Super funds, home loans, insurance etc - they all give you promises, but which one to choose..