Best Performing Super Funds: Monzi’s A-Z Guide

Are you setting up a new super fund and want the best deal? Or do you simply want to learn more about the best performing super funds in Australia? Either way, you’ve come to the right place! Monzi is a quick and easy lender-finding service that pairs Australians with the most reliable lenders available every day.

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What is super?

So, before we begin exploring which are the best performing super funds available in Australia, what is super exactly?

First of all, ‘super’ is short for ‘superannuation’. Put simply, super is money that you set aside during your working career for retirement.

Moreover, it is your money, and your long-term investment in your future. Typically, you begin accumulating super when you start working. This is because your employer takes a certain portion of your salary and invests it into a super fund for you.

As a result, when you are older and considering retirement, you can hopefully live comfortably on the super you have saved. In addition, you will likely not have to stress as much about working for a regular income, or relying on an age pension.

Overall, super is an easy way for Australians to save money for their retired lives.

What is a super fund?

Now that we have established what super is, what exactly is a super fund? Great question!

In short, a super fund is an institution that you pay a portion of your money into throughout your working life.

The super fund then takes the money that you and your employer deposit into this fund, invests it, increases the balance through reinvestment, and puts it aside for your retirement.

There are many different kinds of super funds. Therefore, you must consider the various options when searching for the best performing super funds for you.

How does a super fund work?

Another good question! In short, your money goes into the fund, the balance grows, and you eventually take that money out.

As of July 2020, your employer should usually be paying around 9.5 per cent of your salary into a super fund of your choosing. In fact, the Australian government’s Superannuation Guarantee (SG) mandates this responsibility of your employer.

Furthermore, you are also able to contribute to your super balance by making your own contributions.

Once you begin putting money into a super fund, that super fund uses your money for a range of things. For example, a super fund may invest your hard-earned dollars into property, shares, and other funds.

However, this doesn’t mean that your super is lost! While super funds invest your money in various ventures in the meantime, they also aim to grow it so that you are able to use it in the future.

Therefore, the balance that is inserted into the super fund will almost always be smaller than the balance that is taken out. However, gains are never totally guaranteed.

Comparing super funds

So, you might be wondering, are there different types of super fund? And yes, there certainly are!

The two main types of super fund are industry super funds and retail super funds. But how exactly are they different? In short, it comes down to the way in which their profits are managed.

In short, retail super funds are primarily responsible to their shareholders. Generally, they are run by large financial entities, including banks and wealth management companies.

Retail super funds can only make a profit through the wealth that is generated by outsourcing basic functions from other sections and companies operating within the fund. This profit is then returned to the shareholders of the fund. However, super funds are never allowed to make a profit in the traditional sense.

On the other hand, industry super funds are primarily responsible to their members. In other words, they are usually recognised as ‘profit to member’ institutions. Basically, unlike retail funds, this means that profits are distributed to members rather than shareholders.

Industry funds were originally established by trade unions and similar employer organisations. As a result, most industry super funds are open to anyone from any field. However, some industry funds are still associated with specific industries.

More types of super fund

Not the kinds of super fund you were looking for? Don’t worry; we’re not done yet!

Other than the super funds just mentioned, there are three additional types of super fund that you may also hear about:

  • Corporate funds: super funds created by a business to provide super for their employees.
  • Public sector funds: super funds created for State or Federal government employees.
  • Self-managed super funds: private super funds created for up to four members and managed by individuals. The Australian Tax Office (ATO) also rigorously regulates these funds, which are often called trusts.

Overall, it is important that you consider the different types of fund available when seeking the best performing super funds. After all, different types of super fund will have different structures, priorities, and outcomes for members. As a result, there may be one that best suits your personal preferences.

What are the best performing super funds?

Unfortunately, Monzi cannot say exactly what the best performing super funds are overall. After all, the performance of a super fund depends upon a wide range of factors. The returns of a fund for one person might vary for another person.

However, Monzi can point you in the direction of the best sites for comparing the best performing super funds.

According to the Australian government’s MoneySmart guide on super, these are some reliable super fund comparison sites:

  • Canstar
  • Chant West
  • Morningstar
  • RateCity
  • SelectingSuper
  • SuperRatings

Each of these comparison sites will offer a wealth of super information for free. However, some of them also provide more in-depth data for a small fee.

Although comparison websites can be highly useful for comparing the best performing super funds, they are also commercial bodies and profit from promoting links. As a result, try to avoid selecting a super fund based on its online rating alone.

On the other hand, super calculators can also make it easier to find the best performing super funds. For example, the MoneySmart website has a super calculator that can compare how various super funds will work for your personal situation. Specifically, you can use the MoneySmart super calculator to determine:

  • what the balance of your super will be when you retire, and
  • how the super fund’s fees will impact your final balance.

Still, keep in mind that any online calculator can only provide an estimate. Your super fund and the market will determine the actual values.

How do you find the best performing super funds?

Are you trying to find a super fund? Not sure what to look for? Fear not – Monzi is here to help!

So, without further ado, here is Monzi’s brief guide on what to look for in a super fund:

  • Performance: it is usually a good idea to compare your fund’s investment outcomes over the last five years. You should also consider the effect of fees and taxes.
  • Fees: every super fund will charge fees of some kind. Fees could be calculated as a constant amount, a percentage, or both. Overall, the lower the fees, the better you fare. Generally, fees are withdrawn from your account on a regular basis and after an action.
  • Insurance: super funds usually have different types of insurance for their members. Some of these might include death cover, total and permanent disability, and income protection. When comparing super fund insurance offers, review the premium rates, amount of cover given, and any exclusions that might impact you.
  • Investment options: most super funds will present a range of investment options to you. For example, you may be able to choose whether your investments are focused on growth, balance, conservatism, cash, ethics, or MySuper. Some funds may even allow you to select the weighting of different investments.
  • Services: some super funds may offer other services, such as financial advice or flexible arrangements.

Super fund comparison: continued

However, please note that this list is not extensive. There may be a range of other important factors to consider when seeking out the best performing super funds.

For more information on the best super funds, consult the above list with a financial advisor. Alternatively, check out the Australian Taxation Office’s website or the Australian government’s MoneySmart guide for further financial advice.

How do you choose a fund?

First of all, there are many different ways to choose a super fund. Overall, it is most important to choose the super fund that is right for you and your financial situation.

Basically, you can either pick your own super fund, or choose whichever super fund your employer uses. You will typically make this decision when you begin a new job, and your employer will go over the various super options available to you.

Then, once you’ve decided on a super fund, you will usually have to set up an account with them unless your employer has already done so.

However, it is important to ensure that you have reviewed all the relevant features of a super fund before deciding to invest in it. In saying that, you can always switch to a new super fund if necessary.

How do you change funds?

Are you considering changing to a new super fund? Sick of sky-high fees and low returns? We totally get it.

Luckily for you, Monzi has a step-by-step guide on how to change super funds quickly and easily. The best part? Changing super funds is a super easy process that you can do completely online, from the comfort of your own home.

So, here are the four key steps you will need to complete to change into the best performing super funds:

  1. Compare your super options and decide on a new fund.
  2. Become a member of your new fund by completing the online membership form.
  3. Move your pre-existing super balance from your old fund into your new one.
  4. Renew your super fund details with your employer and wherever else necessary.

How do the super membership forms work?

Paperwork can often be a nightmare, but it doesn’t have to be! After all, if you have all the necessary details on hand, it should be a breeze.

Therefore, it is vital to remember that completing a super membership form will involve you providing your personal details, so ensure that you have the following information handy:

  • Your personal information, including your full name, address, contact details, and Tax File Number (TFN).
  • Your employer’s details, including the business name, address, and Australian Business Number (ABN).
  • The level of insurance cover that suits you. Most super funds will include death and TPD cover as a default, but you can decide to add certain cover or opt-out of all cover.
  • The details of your chosen beneficiaries: who will receive your super in the event of your passing?

If you follow these simple steps, you should have no trouble changing super funds. Keep in mind that if you neglect to provide your fund with any requested information, your request to switch funds may be delayed.

The pros of switching super funds

Thinking about switching to a new super fund? Can’t make up your mind? Let us help you out. Here are Monzi’s pros and cons of switching super funds.

First of all, some benefits of changing to a new super fund might be:

  • the opportunity to change into a fund with lower fees and higher returns;
  • the chance to change into a fund with ethical values that align with yours;
  • the possibility of reducing your super fees right now and improving your future super balance; and
  • the opportunity to locate any super you may have lost and consolidate it within one fund.

The cons of switching super funds

On the other hand, some drawbacks of changing super funds might be:

  • you may have to pay an exit fee when leaving your current super fund;
  • you may have to complete a bit of paperwork when leaving your current fund, but this shouldn’t take longer than an hour; and
  • some employers may only pay your super into their nominated super fund, but this isn’t common.

Overall, you must evaluate your super against the above factors if you feel that your current fund isn’t one of the best performing super funds for you.

In addition, please keep in mind that the above lists are not conclusive. There may be a range of other advantages and disadvantages to switching super funds that we have not yet mentioned.

Calculating the best performing super fuds

How are super fund fees determined?

The fees that super funds charge their members are not based on your super balance alone.

In short, the fees that your super fund will charge you depends on a variety of factors, including:

  • Your super balance
  • Age
  • Level of cover
  • Your investment options
  • Your super fund

However, it is important to remember that this list is not comprehensive. In fact, there may be a range of other elements that can determine the annual super fees that you pay.

What types of fees are usually charged by a super fund?

There are a range of fees that super funds generally charge. However, some of the most common types of fees are:

  • Administration fees: this usually covers the cost of general operations and administration, including the issuing of annual statements to members.
  • Performance fees: the fund will usually charge this fee when particular investment targets have been exceeded throughout the year. The performance fee is withdrawn from the investment returns before they are distributed into your account.
  • Investment fees: this typically covers the cost of managing your investments, and might vary depending on your investment choice.
  • Insurance fees
  • Other indirect expenses: this might include switching fees when moving from one investment alternative to another, advice fees, or even buying and selling investment fees.

What are the best performing super funds Australia?

Well, that really depends on what you define as being the ‘best performing’.

For example, a good performance for a super fund could mean the lowest fees, the highest returns, or the greatest member satisfaction.

So, why don’t we explore the best of each category?

Best performing super funds: high returns

Next, which are the best performing super funds in Australia for high returns? The answer to this question is not quite as simple as it seems.

In short, Monzi cannot compare the returns of different super funds without considering the time period. For example, the returns of one super fund over a single year will differ to the returns of that same fund over a five-year period.

Therefore, the best way to compare the best performing super funds for high returns is by time period. Let’s get started!

According to a 2020 Canstar article, the following are the best performing super funds for high returns over a one-year period:

  • Spaceship Growth X
  • Future Super
  • Vision Personal
  • BussQ Premium Choice
  • Aware Super Personal
  • Cbus Industry Super
  • However, note that these rankings are subject to change. Do your research to determine which funds may provide the best returns.

    Which super funds have the highest returns over three years?

    In contrast, the best performing super funds with the highest returns over three years are:

    1. AustralianSuper
    2. Australian Ethical Super
    3. Virgin Money Super
    4. Vision Personal

    However, note that these rankings are subject to change. Do your research to determine which funds may provide the best returns.

    Which super funds have the highest returns over five years?

    Furthermore, the super funds with the highest returns over five years are as follows:

    1. AustralianSuper
    2. Cbus Industry Super
    3. Catholic Super Employer Sponsored
    4. HOSTPLUS Personal Super
    5. Vision Personal
    6. Australian Ethical Super
    7. Aware Super Personal
    8. Media Super Personal Superannuation Account
    9. Statewide Super Employer-Sponsored
    10. BussQ Premium Choice

    However, note that these rankings are subject to change. Do your research to determine which funds may provide the best returns.

    Which super funds have the highest returns over seven years?

    Finally, the highest performing super funds over seven years are:

    1. AustralianSuper
    2. HOSTPLUS Personal Super
    3. Statewide Super Employer-Sponsored
    4. Bendigo SmartStart Super
    5. BussQ Premium Choice
    6. CareSuper Employee Plan

    However, please keep in mind that past returns doesn’t always reflect the fund’s future performance. Moreover, these rankings are subject to change. As a result, you may need to do further research to determine what the best performing fund may be.

    Best performing super funds: member satisfaction

    Finally, which super funds in Australia are the best performing in terms of customer satisfaction?

    According to the government’s QSuper site, the following are the best performing super funds for member satisfaction:

    1. QSuper
    2. Unisuper
    3. AustralianSuper
    4. First State Super
    5. Cbus
    6. Colonial First State
    7. HESTA
    8. HOSTPLUS
    9. OnePath
    10. MLC
    11. Sunsuper
    12. BT
    13. REST Super
    14. AMP

    Additionally, the following table outlines the percentage of satisfied members across various super fund industries, as of May 2020:

    Type of fundPercentage of satisfied members
    Public sector funds72.7
    Self-managed fund72.3
    Industry funds64.4
    Retail funds58.7

    However, it is important to remember that past member satisfaction does not guarantee your satisfaction with a super fund. It is your responsibility to ensure that your super fund benefits your personal financial circumstances.

    What were the best performing super funds in 2019?

    Great question! According to a 2020 Canstar research study, the overall best performing super funds in 2019 were:

    1. AustralianSuper
    2. Catholic Super
    3. HOSTPLUS Super
    4. Statewide Super
    5. Sunsuper
    6. VicSuper

    However, take this with a grain of salt! After all, the value of a particular super fund may vary drastically from person to person.

    Best performing super funds: pension

    Are you living on a pension and looking for the best super fund for you? You’ve come to the right place!

    Although Monzi cannot say for sure which are the best performing super funds for pensioners, we can provide you with some useful information on this topic.

    For example, QSuper is the 2020 winner of Chant West’s Pension Fund of the Year award, and has won a total of five times now.

    However, as previously mentioned, there are numerous factors involved in determining the ‘best performing’ super funds.

    Therefore, if you’re on the hunt for the best performing super funds for pensioners, consider consulting a financial adviser or perusing the numerous online comparison calculators.

    Can I use my super as loan security?

    Are you looking for a secured loan, and want to use your super as collateral? Unfortunately, this is probably not an achievable goal.

    Super is known as a protected asset. This means that, no matter how much you owe, credit providers are unable to access and withdraw from your super. As a result, it is highly unlikely that you will be able to secure a loan using your super funds.

    However, Monzi’s network of lenders will generally accept a vehicle as security against a loan, including your car, motorbike, caravan or boat.

    So, if you’re willing to obtain your secured loan another way, consider applying with Monzi!

    About Monzi

    So, you want to know a little more about the brainy team behind this article? We thought you’d never ask!

    Monzi is an expert-lender finder service on a mission to help everyday Aussies find the loans they need, when they need them.

    How to Apply with Monzi

    Ready to apply with Monzi? Let’s get started then!

    Financial stress can be hard to deal with, but Monzi’s process isn’t. Just follow these simple steps:

    1. Use the loan slider at the top of this page to choose your preferred loan amount and repayment term.
    2. Enter all the personal information required.
    3. Give us time while we try to pair you with a suitable lender.
    4. Prepare for us to contact you with an outcome.
    5. If we are successfully able to pair you with a lender, expect them to be in touch with you directly to start the process.

    If all goes to plan, you may have the funds in your account sooner than you think!

    Apply Now!

    Awesome! Monzi has now done its best to help you learn about the best performing super funds.

    Still not satisfied? Looking for a loan quick-smart? Apply with Monzi today. Simply scroll up to the loan slider at the top of this site, and fill in the necessary information.

    Not ready to apply just yet? No sweat. You’re welcome to follow Monzi on Facebook, Instagram, Twitter and Pinterest to keep up to date with the latest and greatest info.

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