Innovation and regular engagement with fund members supports strong returns, writes Kirby Rappell, CEO of SuperRatings
We are now three years on from the introduction of MySuper, the low-cost default product that each fund is required to provide, and it has continued to put downward pressure on fees across the industry. However, a focus on fees and costs does not always drive the strongest member outcomes, so it is important to take a holistic view of your super and consider the outcomes achieved once fees, costs and investment earnings are applied.
But comparing funds can be an overwhelming task given the large number of them. This is compounded by the fact that most offer multiple investment options, which have different objectives, asset mixes and returns. It’s no wonder that many people struggle to answer the question, “Which fund is right for me?”
Given the bewildering amount of information available, SuperRatings has once again helped Money to conduct an in-depth analysis of the funds on offer. This year we reviewed over 440 superannuation products and a further 180 pension products that are open to all Australians, to seek out those funds that provide the best value for money.
Our ratings process focuses on a range of categories that are crucial to identifying which funds are providing the best value-for-money outcomes. We follow a consistent process each year that considers measures relating to investments, fees and charges, and insurance.
These quantitative aspects are vital, yet other features are also important to members so we make sure that we consider features that contribute to how user friendly a fund is, as well as its ability to drive non-monetary outcomes. Officially, we assess funds in terms of administration, member education, financial advice and governance, to make sure our ratings are well rounded and reflect members’ perceptions and needs.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
An outrageous, beautiful monopoly
Telstra's mobile business is a cash machine with few competitors, giving it the highest returns in the world.
Drop the anchor to judge value
Buying and selling decisions should be based on where a stock price is going, not where it has been.
Powering the AI boom
Beyond the software and chipmakers, where will the energy come from?
Get into life
Tucked inside super are products that can protect you from life's inevitable uncertainties.
Paths to home ownership
Taking the road less travelled can sometimes deliver unexpected benefits.
Sold! Quick ways to add value
Small, strategic changes can have a big impact on the look and feel of your home. And get you a better price on auction day.
Money lessons the kids need to know
Your children can learn a lot from your past money mishaps. Here are eight financial conversations I have had with mine.
Property-investing rules: are they likely to change?
The pressure for the government to curb the tax benefits of tax concessions, such as negative gearing and the capital gains tax discount, is unrelenting. Most recently, independent senators David Pocock and Jacqui Lambie proposed five options for paring back investment property tax concessions, with savings to the Federal budget of up to $60 billion over the next decade.
What's love got to do with it?
A rollercoaster of emotions could be driving poor crypto behaviour.
Are we ready to be cash-free?
Saying goodbye to our piggy banks too soon could leave small businesses in the dark when problems arise.