Choosing a Super Fund - Quantiphy

Choosing a Super Fund

August 13, 2021

Choosing a Super Fund That’s Right for You

All Australians can choose the superannuation fund they want their employer to pay their contributions to. But with so many funds to choose from – and so many investment options – the choice can be overwhelming. 

Getting it right is critical because your decisions around superannuation can significantly affect your lifestyle in retirement. So what do you need to consider? We’re here to help. 

Quantiphy offers a range of financial services, including help with superannuation products.

How to choose a super fund

With so many superannuation funds to choose from, finding the one that’s just right for you can be daunting.

By breaking down your choices, you will get a clearer picture of the fund that suits you best.

Your decision will be based on a number of factors, including:

  • The performance of the super fund
  • The fees it charges 
  • Your age and stage in life
  • Investment options – Make sure there are options that suit your needs and comfort with risk.
  • What the superannuation fund offers in terms of insurance, services and extra benefits


Investment Options of Super Funds

Superannuation funds invest on your behalf and most funds will let you choose from a range of investment options.

The risk associated with each investment option can vary quite significantly. What you choose will depend on your age, your retirement goals, and how much risk you are prepared to take.

Generally, a ‘conservative’ option offers lower returns, because the risk is lower. On the other hand, ‘growth’ options carry a greater risk – but can return more.

Types of investment options can include:

  • Growth – which primarily invests in shares or property (around 85%)
  • Balanced – which invests around 70% in shares and property, and the rest in fixed interest and cash
  • Conservative – which invests primarily in fixed interest and cash, but includes around 30% in shares and property
  • Cash – which invests 100% in Australian deposit-taking institutions or in a ‘capital guaranteed’ life insurance policy
  • Ethical – which invests in companies that meet certain environmental, social and governance standards set out by the superannuation fund.

Performance of Super Funds

How a superannuation fund performs is critically important to the growth of your superannuation monies.

Even a 1% difference in performance can add – or detract – tens of thousands of dollars from your superannuation nest egg over a lifetime of employment. Just imagine how that could positively or negatively affect your retirement lifestyle!

A word of caution, however. How a super fund performed last year may not be a reliable indicator of how it will perform in the coming year, or years.

The key is to look at a superannuation fund’s performance over a number of years. While it is not a guarantee that this is how it will perform in the future. It will give you a pretty good indication of its averaged and proven performance.

Self-Managed Super Funds

Self-managed super funds (SMSFs) are another option when making a choice on superannuation. SMSFs give you control over your superannuation fund but come with additional responsibilities and administration. When assessing whether a SMSF is right for you, there are some important considerations.

A financial adviser is vital in helping you navigate the complex superannuation environment. Contact us today!



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2021 Quantiphy – Eastern Suburbs, Sydney. All Right Reserved. Website By Omni Online