Do SuperFunds Type Products Exists for Personal Investments?

yjun355 on 03/05/2023 - 22:28

For superfunds, typically you have following options:
a. High growth
B. balanced
c. …

For personal investment, are there super like funds which essentially replicate super performance? Ideally simple as Balanced growth which is average. Not ETF but in actual funds.

Financial

Comments

  • mskeggs on 03/05/2023 - 22:31
    +5

    Yes, they are called managed funds, and more recently, ETFs. Vanguard is a very popular version.
    https://www.vanguard.com.au/personal/invest-with-us/readymad…

    • yjun355 on 03/05/2023 - 22:55

      thanks a lot. this is the equivalent in Vanguard balanced.

      https://au.finance.yahoo.com/quote/VBINX/performance/?guccou…

      however, competing with Australian super balanced growth, Vanguard is quite different. last year was down 16% compared to 2.5% from Australian super balanced fund

      • mskeggs on 03/05/2023 - 22:59

        You will have to research managed funds to find one that has the mix of investments you want.
        Australian Super, for example, carefully selects their investments in each fund. I don’t think they offer these outside of super. Other funds are available outside of super.
        If there is a particular super fund you wish to invest in outside of super, call them and ask if they offer it to private investors.

      • spal on 04/05/2023 - 08:42

        You will find that generally managed funds will work in only one market. So, although the distribute their portfolio risk, they still ,carry the general risk which applies to the market the fund invests in. Say for example the managed funds would invest in Australian share, so if the Australian share market is down, it will have an impact on the managed funds. Super funds on the other hand will balance the risk by investing in different types of investments. So the growth funds generally invest 70% in shares and 30% in debt markets. So, when you are comparing managed funds to super funds, you are not really comparing apples to apples. Also, apart from EFTs the funds management costs would be higher than the industry superfunds.

      • happydude on 04/05/2023 - 12:19

        Past performance is not a reliable indicator of future performance.

  • jv on 04/05/2023 - 00:12
    +1

    essentially replicate super performance?

    No, you will not get the tax concessions but still pay the high fees.

  • Mokr on 04/05/2023 - 07:47

    Just get vdhg or the betashare equivalent

  • JIMB0 on 04/05/2023 - 08:21

    Why don't you want to buy ETFs?

    • yjun355 on 04/05/2023 - 08:35
      +1

      yeah open to that. is there any particular etf that replicates similar returns to balanced growth in a typical super fund?

      • JIMB0 on 04/05/2023 - 08:42

        You'll need to look at the asset allocation of the particular super fund and find an ETF that is similar, minus the 1% fees of course.

  • Shadowsfury on 04/05/2023 - 09:21

    A lot of super funds have lots of unlisted assets (unlisted shares, properties, infrastructure like airports etc) - which can cause issues with them not being revalued as frequently as listed shared would be - probably why you see AusSuper Balanced didn't drop much

    https://www.australiansuper.com/investments/your-investment-…
    You can see here their Balanced option is 25% unlisted investments (private equity + unlisted infrastructure + unlisted property)

    https://www.afr.com/companies/financial-services/apra-puts-t…

  • Malik Nasser on 04/05/2023 - 09:40

    You can look into ETF's and tailor your own solution.
    On the growth side, the below have a historical record of performance, and cover numerous geographical areas for diversification:

    VAS - Vanguard Australian Shares Index ETF
    https://www.marketindex.com.au/asx/vas

    VGS - Vanguard MSCI Index International Shares ETF
    https://www.marketindex.com.au/asx/vgs

    IXJ - iShares S&P Global Healthcare ETF
    https://www.marketindex.com.au/asx/ixj

    MOAT - VanEck Morningstar Wide Moat ETF
    https://www.marketindex.com.au/asx/moat

    The Australian share fund pays a higher dividend, so you will have a higher tax bill on that.
    The other global funds pay a subdued dividend, so the main tax concern will only be realised when sold (CGT).

    From here you will need to add some other ETF's to help you receive a balanced porfolio (bond funds, etc…).

  • MrMarket on 04/05/2023 - 12:50

    you can construct your own portfolio with not a lot of work and tailor to your risk

    you can pick best of breed and quality business in each sector and then keep some cash and diversify into properties

    let say if I want to get exposure to banks I would only buy CBA and MQG, I want exposure to Comsumer stuff I would only buy WOW and WES
    if I want exposure to tech I would get CAR,REA etc… health care CSL, RMD

    If I want midcap that has strong balance sheet and offer growth, I would pick REH, RWC, SVW etc…

    by carefully select quality business you would do very well long term

    if I want high risk up and new business that has potential to make me money many times over or I could lose 50% or all
    I throw 5-10% of my portfolio and spread them over 6-10 business

    and don't fall for the sale pitch Australia is only 2% of the world market and you need to go outside Australia if you not comfortable with oversea business
    Australia has always been in the top 3 market in term of return, so if you invest well in Australia by picking strong business you do just as well or even better than going outside and the bonus is you get franking credits and that can make a huge difference to your return

    but if you not comfortable of selecting your own stock then ETFs is your safest option.

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