Top super funds revealed as Aussies get ‘impressive’ cash boost

Australian superannuation funds delivered stronger than expected returns in 2024, with international technology and Australian banking shares driving the “impressive” result. New research has revealed the top-performing super funds that offer the best returns.

The average super fund with a balanced investment option returned 8.8 per cent to members for the year to June 30, 2024, according to SuperRatings. But some of the top performers handed their members double-digit returns.

Hostplus’ Indexed Balanced fund was the top performer for the year for balanced strategies, returning 12.2 per cent to its members. This was closely followed by Raiz Super’s Moderately Aggressive option and Colonial First State’s Enhanced Index Balanced option with returns of 12.1 and 11.4 per cent respectively.

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Funds with a higher exposure to shares and listed assets generally outperformed for the year, while those with a greater exposure to unlisted property had more “subdued outcomes”.

Funds with lifecycle investment styles also outperformed single default options due to their higher allocation to shares, particularly for younger members.

SuperRatings executive director Kirby Rappell said the research house had noticed a trend of lifecycle options increasing their exposure to growth assets such as shares.

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“While this has benefited members this year, higher exposure to these assets also comes with increased ups and downs, and we encourage members to learn how their fund’s investment strategy works so they are comfortable with annual and long-term performance outcomes,” Rappell said.

The research house also found investments with a sustainable focus outperformed over the year, with Raiz Super’s Emerald investment option reporting the highest balanced option return at 14.8 per cent.

Top 10 balanced options over 12 months

SuperRatings defines balanced funds as those with 60 to 76 per cent invested in growth assets.

Here were the top balanced options for the year:

Top 10 balanced options over 10 years

While annual returns can be useful, Rappell noted the purpose of super was to maximise returns over the long term.

“Most of us will have plenty of time until we retire and begin to access our superannuation and therefore it is important to block out as much of the noise as possible and focus on how we are doing over the long term,” he said.

Here’s a look at balanced option funds offering the best 10-year returns.

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