Strong long-term returns
Super is a long-term investment. While past performance is not a reliable indicator of future performance, you may wish to check how different funds have performed - and it makes sense to compare performance over a longer term, such as 10 or 15 years.
Compare apples with apples by selecting the same period of time and investment option when comparing super funds. Keep in mind if you’re only comparing performance on its own, you’re not getting the full picture on the best fund for you. To overcome this, try a net return analysis (also known as a net benefit analysis) which takes into account performance minus the impact of admin fees and costs.
Although all super funds charge fees, how those fees are calculated and the type of fees that are charged can differ from fund to fund.
If a fund gets great returns, this may offset higher fees and costs. You should consider whether a fund offers value for money, by considering their fees alongside returns and other factors (for example, member services).
Also, if you’re only looking at fees without considering performance, you’re missing key information that may be useful. You can do a net return analysis, (also known as a net benefit analysis) which takes into account fees in relation to returns delivered.
Think about what's important to you and how your superannuation will be invested.
Some questions to ask yourself:
- Does the fund invest in a mix of assets with a focus on the long-term?
- Can the fund invest in different asset types, such as listed and unlisted assets?
- Does the fund consider the different investment needs of members at different stages of super?
- Is responsible ownership, or environmental, social and governance (ESG) factors considered as part of investing?
- Does the fund manage some of the money internally or is it all managed by external fund managers?
- Does the fund have an active approach to investing, or investing only in passive styles which track market indices?
Find out what options you have for your savings, because how your super will be invested will determine your returns.
Some funds offer a lifecycle approach, which will change the mix of investments over time so they're matched to your stage in life
They may offer diversified investment options so you're not relying on only one type of investment which can be risky if things go south.
You may have the choice of lower cost index options.
Or they may offer socially conscious options, which screens out certain investments which are considered to have a negative environmental or societal impact.
If Environmental, Social and Governance (ESG) factors are in important consideration for you, some questions you could ask include:
- Does the fund consider ESG factors, like climate change and workplace health and safety, as part of making its investment decisions?
- Does the fund have restrictions on investments in certain sectors, like in tobacco or thermal coal mining?
- Does the fund engage with the companies they own to influence positive outcomes?
Most super funds offer death cover, total and permanent disability cover, and income protection insurance.
Insurance through super can be a convenient and cost-effective way to make sure you and your family are protected, should the worst happen. When looking at a fund's insurance offering, you should consider things like the type and amount of cover on offer, the premiums, how easy it is to change your cover, and the terms and conditions that apply.
Everyone's situation is different, and we haven't considered your financial situation. So, before making a decision about joining, you should read our PDS and Target Market Determination (TMD) and consider your own personal circumstances to decide if this is the right thing for you. Past performance is not an indicator of future performance.