What is the Best Growth Super Fund in Australia?

Superannuation is a critical component of financial planning for Australians, and choosing the right growth super fund can significantly impact long-term wealth accumulation. Growth super funds are designed for investors seeking higher returns over the long term by investing predominantly in equities and other growth assets. In this blog post, we’ll explore what makes a great growth super fund, key factors to consider, and some of the top-performing funds in Australia.

What is a Growth Super Fund?

A growth super fund is a type of investment option within superannuation that allocates a large portion of its portfolio (typically 70-85%) to growth assets such as shares, property, and infrastructure. The remaining portion is invested in defensive assets like fixed income and cash. These funds aim to maximize long-term returns but come with higher volatility compared to balanced or conservative funds.

Factors to Consider When Choosing a Growth Super Fund

Before selecting a growth super fund, it’s essential to evaluate several key factors:

1. Investment Performance: Look at long-term returns (e.g., 5-10 years) rather than short-term gains.
2. Fees and Charges: Lower fees can significantly improve net returns over time.
3. Risk and Volatility: Ensure the fund aligns with your risk tolerance.
4. Asset Allocation: Understand where your money is being invested.
5. Fund Reputation and Management: Look for experienced fund managers with a solid track record.
6. Sustainability and Ethical Investment Options: Many funds now offer ESG (Environmental, Social, and Governance) investment strategies.

Top Growth Super Funds in Australia

Here are some of the best-performing growth super funds based on historical returns, low fees, and strong management:

1. AustralianSuper – High Growth Option

• 5-Year Return: ~9.5% p.a.
• Asset Allocation: 85% growth, 15% defensive
• Fees: Competitive, ~0.68% p.a.
• Why Choose It? AustralianSuper is consistently ranked among the top-performing funds, offering strong returns and low fees.
• Website: AustralianSuper

2. Hostplus – Shares Plus Option

• 5-Year Return: ~10.2% p.a.
• Asset Allocation: 90% growth, 10% defensive
• Fees: Low, ~0.61% p.a.
• Why Choose It? Hostplus has an aggressive investment strategy suited for long-term investors who can tolerate higher volatility.
• Website: Hostplus

3. UniSuper – Sustainable High Growth Option

• 5-Year Return: ~9.3% p.a.
• Asset Allocation: 85% growth, 15% defensive
• Fees: Mid-range, ~0.70% p.a.
• Why Choose It? UniSuper offers strong ESG investment options for those looking for sustainable investments.
• Website: UniSuper

4. Aware Super – High Growth Option

• 5-Year Return: ~8.8% p.a.
• Asset Allocation: 80% growth, 20% defensive
• Fees: Low, ~0.65% p.a.
• Why Choose It? Aware Super is a solid performer with a strong track record in ethical and sustainable investments.
• Website: Aware Super

5. Cbus Super – Growth (MySuper) Option

• 5-Year Return: ~9.0% p.a.
• Asset Allocation: 80% growth, 20% defensive
• Fees: Low, ~0.55% p.a.
• Why Choose It? Cbus is ideal for those in the construction industry but is also available to the general public.
• Website: Cbus Super

10 Frequently Asked Questions (FAQs)

1. What is a growth super fund?
   • A super fund that primarily invests in growth assets like shares and property to maximize long-term returns.
2. Are growth super funds risky?
   • Yes, they carry higher risk due to market volatility but offer higher potential returns.
3. Which growth super fund has the highest returns?
   • Hostplus Shares Plus and AustralianSuper High Growth are among the top performers.
4. How do I switch to a different super fund?
   • You can compare funds, open a new account, and request a rollover via myGov or your new fund.
5. What fees should I look for in a super fund?
   • Check for administration fees, investment fees, and indirect costs.
6. Can I have multiple super funds?
   • Yes, but consolidating into one fund can save fees and simplify management.
7. How often should I review my super fund?
   • Annually, to ensure it aligns with your financial goals and risk tolerance.
8. What happens if my super fund underperforms?
   • You may consider switching to a better-performing fund.
9. Do growth super funds invest in international markets?
   • Yes, many funds diversify investments globally for better returns.
10. Are there ethical growth super funds?

• Yes, UniSuper and Aware Super offer strong ESG investment options.

How to Switch to a Better Growth Super Fund

If you’re not happy with your current super fund’s performance or fees, switching is straightforward:

1. Compare Funds: Use comparison tools like Canstar or Chant West.
2. Check Exit Fees: Some funds may charge exit fees or withdrawal penalties.
3. Open a New Super Account: Register with your chosen super fund online.
4. Request a Rollover: Use the ATO’s myGov portal or ask your new fund to handle the transfer.
5. Update Employer Details: Ensure your employer is paying contributions into your new fund.

Conclusion

Choosing the best growth super fund in Australia depends on individual investment goals, risk tolerance, and fees. AustralianSuper, Hostplus, UniSuper, Aware Super, and Cbus Super are among the top performers based on historical returns and investment strategies. Always review the latest fund performance and consult a financial advisor before making a decision.

Have you switched super funds recently? Share your experience in the comments below!