How to choose a super fund

How to choose a super fund

1. Choose your investment option

Not only do you get to choose your super fund, but also the investment option within that super fund.

Here's an overview of the types of super investment options availabe, along with their general asset mixes. More investment allocation into growth asstes (like shares) comes with more risk in the short term, but aims for more reward in the long term.

Conservative funds:

• Risk level: Low - medium (invests 21-40% of balance into growth assets)
• Asset mix: Primarily lower-risk investments like bonds and cash, with a smaller portion in shares and property. These funds aim for stable returns and lower risk, ideal for those who prefer a cautious investment approach or are close to retirement.

Balanced funds:

• Risk level: Medium - high (invests 61-80% of balance into growth assets)
• Asset mix: A diversified portfolio that includes shares, property, bonds, and cash. These funds aim to achieve a balance between risk and growth, making them a popular choice for a wide range of investors, particularly as a default option set by employers and the fund's MySuper option.

High growth funds:

• Risk level: High - very high (invests 81-100% of balance into growth assets)
• Asset mix: Mainly high-risk investments like shares and property. These funds target higher returns over the long term but come with greater volatility and risk in the short term. They are typically chosen by members with a longer investment horizon and a higher tolerance for market fluctuations.

Single asset class funds:

• Risk level: Low - Very High
• Asset mix: These funds concentrate on a single asset class, such as Fixed Income, Australian Shares (Aust Shares), International Shares (Int'l Shares), or Property. By focusing on one type of asset, these funds offer a more targeted investment approach but with higher risk due to lack of diversification. However, investing 100% in Fixed Income would have significantly lower risk than investing 100% in International Shares.

You can also choose an ethical super fund if you'd like your super to be invested more sustainably into things like renewable energy.

Expert insight: Pick your high-growth option carefully

"For younger investors with over 30 years until retirement, opting for a high-growth superannuation fund can be strategic. However, not all high-growth options are the same. One fund might allocate 80% to growth assets, while another allocates 95%, leading to different outcomes. It's crucial to look beyond labels and understand how each fund invests your money."

Jessy Wang

Financial adviser, Financial Spectrum

2. Pick a fund with great returns

Once you've decided which type of investment option you'd like to go with, you can compare the returns from a number of different super funds.

Make sure you focus on the average returns over an extended period, like 10 years, as this provides a more accurate picture of the fund's long-term performance through various market cycles.

Balanced funds: Look for a balanced fund that has returned at least 7% p.a. over the past 10 years.

Conservative funds: A good benchmark would be a fund that has returned at least 5% p.a. over the past 10 years.

High growth funds. Look for a high growth option that has returned at least 9-10% p.a. over the past 10 years.

To show the impact of even a 2% difference in returns, let's use Finder's superannuation calculator to consider different hypothetical examples.

Let's say you're 25, earning $80,000 a year, making no additional contributions and have a current super balance of $30,000. Your annual fees are $300.

If your fund had an average annual return of 9% instead of 7% you'd retire with an additional $318,815!

3. Choose a fund with low fees

As with most fees generally, the lower the better. Consider:

Whether they're worth it. You might come out ahead paying more fees for better investment returns, rather than choosing a low-fee fund that has consistently underperformed.

Exactly how much you're paying: Superannuation fees can be extremely confusing. As a loose rule of thumb, try to aim for annual fees that are less than 1% of your balance.

Why the fees are higher or lower. A lot of super funds offer passive, index-based investment options which are much cheaper than actively managed options.

Using the exact same fictional situation as above, and changing nothing but reducing the fees from $300 a year to $150 a year, your new projected balance at 65 would be $619,271. That's an extra $8,536 in your balance at retirement, just by switching to a fund with lower fees.

4. The insurance options

Most super funds offer insurance policies within your account, which are often slightly discounted. Generally, you can get a basic level of insurance cover for:

• Death (life insurance)
• Total and permanent disability (TPD insurance)
• Temporary inability to work (income protection insurance)

To compare the insurance cover offered by two different super funds you may want to look at:

The types of cover: Do they both offer life, TPD and income protection insurance, or does one of them offer fewer cover types? Do they even offer any insurance at all?

The payout: How much is paid out for each of the three cover types?

The premiums: How much is it costing you? The cost of insurance will be taken out of your investment returns.

Can you increase your cover? If you want more insurance cover, check how much you can increase your level of cover by.

In very basic terms, you might think of super insurance as the cheap "no-brand" option, and insurance outside of super as the "deluxe brand name" option. Depending on your situation, you might want to have it all inside super, all of it outside super, or a combination of both.

Expert insight

"There are other factors you might want to consider when choosing a super fund. These might include whether you want to choose an industry super fund or retail super fund. Is responsible investing important to you? Then an ethical super fund or one which advocates for ESG topics could be more relevant. Member (customer) service is also important: does the fund you're considering also offer financial advice? How is the service on its live chat or call centre? And, given that everything is so digital these days, what is the fund's digital offering? These are all factors to think about when choosing a super fund."

Pascale Helyar

Superannuation and wealth expert

Finder survey: What features matter most to Australians when choosing a super fund?

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10 of 580 results

Finder Score	Last 1 year performance (p.a.)	Last 3 year performance (p.a.)	Last 5 year performance (p.a.)	Last 10 year performance (p.a.)	Fees on $50k balance (p.a.)
Promoted 9.4 Excellent Aware Super High Growth Indexed NewIndustry fundIndexed investmentHigher risk	9.4 Excellent	Last 1 year performance (p.a.) +11.04%	Last 3 year performance (p.a.) +13.19%	Last 5 year performance (p.a.) N/A	Last 10 year performance (p.a.) N/A	Fees on $50k balance (p.a.) $162	Go to siteView details Compare product selection Compare	loading
Promoted 9.7 Excellent AMP Super Specialist International Shares Finder AwardHigher risk	9.7 Excellent	Last 1 year performance (p.a.) +14.03%	Last 3 year performance (p.a.) +17.73%	Last 5 year performance (p.a.) +12.06%	Last 10 year performance (p.a.) +13.15%	Fees on $50k balance (p.a.) $545	Go to siteView details Compare product selection Compare	loading
Promoted 9.5 Excellent Spaceship - GrowthX Higher risk	9.5 Excellent	Last 1 year performance (p.a.) +14.71%	Last 3 year performance (p.a.) +16.84%	Last 5 year performance (p.a.) +9.32%	Last 10 year performance (p.a.) N/A	Fees on $50k balance (p.a.) $559	Go to siteView details Compare product selection Compare	loading
9.9 Excellent Aware Super International Shares Finder AwardIndustry fundHigher risk	9.9 Excellent	Last 1 year performance (p.a.) +14.15%	Last 3 year performance (p.a.) +16.97%	Last 5 year performance (p.a.) +12.55%	Last 10 year performance (p.a.) +13.24%	Fees on $50k balance (p.a.) $162	Go to siteView details Compare product selection Compare	loading
9.8 Excellent Hostplus - International Shares - Indexed Industry fundHigher risk	9.8 Excellent	Last 1 year performance (p.a.) +13.93%	Last 3 year performance (p.a.) +16.28%	Last 5 year performance (p.a.) +12.32%	Last 10 year performance (p.a.) N/A	Fees on $50k balance (p.a.) $154	Go to siteView details Compare product selection Compare	loading
9.8 Excellent Vanguard MySuper - Lifecycle Age 48 NewLifestageHigher risk	9.8 Excellent	Last 1 year performance (p.a.) +11.99%	Last 3 year performance (p.a.) +12.7%	Last 5 year performance (p.a.) N/A	Last 10 year performance (p.a.) N/A	Fees on $50k balance (p.a.) $280	Go to siteView details Compare product selection Compare	loading
9.8 Excellent Virgin Money LifeStage Tracker Born 2014-2018 LifestageHigher risk	9.8 Excellent	Last 1 year performance (p.a.) +11.96%	Last 3 year performance (p.a.) +12.8%	Last 5 year performance (p.a.) +8.69%	Last 10 year performance (p.a.) N/A	Fees on $50k balance (p.a.) $358	Go to siteView details Compare product selection Compare	loading
9.8 Excellent Virgin Money LifeStage Tracker Born 1974-1978 LifestageHigher risk	9.8 Excellent	Last 1 year performance (p.a.) +11.92%	Last 3 year performance (p.a.) +12.83%	Last 5 year performance (p.a.) +8.66%	Last 10 year performance (p.a.) N/A	Fees on $50k balance (p.a.) $358	Go to siteView details Compare product selection Compare	loading
9.8 Excellent Virgin Money LifeStage Tracker Born 1979-1983 LifestageHigher risk	9.8 Excellent	Last 1 year performance (p.a.) +11.91%	Last 3 year performance (p.a.) +12.8%	Last 5 year performance (p.a.) +8.62%	Last 10 year performance (p.a.) N/A	Fees on $50k balance (p.a.) $358	Go to siteView details Compare product selection Compare	loading
9.8 Excellent Virgin Money LifeStage Tracker Born 1984-1988 LifestageHigher risk	9.8 Excellent	Last 1 year performance (p.a.) +11.83%	Last 3 year performance (p.a.) +12.73%	Last 5 year performance (p.a.) +8.64%	Last 10 year performance (p.a.) N/A	Fees on $50k balance (p.a.) $358	Go to siteView details Compare product selection Compare	loading

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How we picked these

The information in this table is based on data provided by SuperRatings Pty Limited ABN 95 100 192 283, a Corporate Authorised Representative (CAR No.1309956) of Lonsec Research Pty Ltd ABN 11 151 658 561, Australian Financial Services Licence No. 421445. In limited instances, where data is not available from SuperRatings for a product, the data is provided directly by the superannuation fund.

*Past performance data and fee data is for the period ending June 2026

Finder Score for super funds

Finder Score makes comparing superannuation products easier by scoring products out of 10 after assessing their performance, fees and features.

We assess products from over 40 providers based on their risk profile.

Read the full methodology

The information in this table is based on data provided by SuperRatings Pty Limited ABN 95 100 192 283, a Corporate Authorised Representative (CAR No.1309956) of Lonsec Research Pty Ltd ABN 11 151 658 561, Australian Financial Services Licence No. 421445. In limited instances, where data is not available from SuperRatings for a product, the data is provided directly by the superannuation fund.

*Past performance data and fee data is for the period ending June 2026

When can't you choose a super fund?

You are not eligible to choose a super fund for your super guarantee contributions if:

• If your super is governed by a state award or registered agreement.
• When it's under workplace agreements made before 1 January 2021 that specify super contributions.
• If you're a federal or state public sector employee.
• If you're in a specific type of defined benefit fund or have reached a certain benefit level.

Frequently asked questions

• Does higher fees mean the super funds are better?

  Higher fees do not necessarily mean a super fund is better. The effectiveness of a super fund should be evaluated based on its performance, services, and alignment with your investment goals, not just fees.

• Should I stay with the default Mysuper product or change super funds?

  While MySuper products, typically balanced funds, are designed to be a default option with simplicity, low fees, and basic features to suit most members, it's worth comparing them with other super funds.

  Other funds might offer better returns or lower fees, and could be aligned with your risk tolerance and investment goals. It's advisable to review and compare the performance, fees, and features of various funds, and consider switching if you find a more suitable option.

• Should I choose to have insurance cover within the super fund?

  Deciding whether to have insurance cover within your super fund depends on your personal circumstances and needs.

  It's important to consider factors like your financial responsibilities, dependents, health, and existing coverage outside super. Insurance through super can be cost-effective as it's often cheaper and premiums are paid from your super balance, not out-of-pocket.

  However, it may reduce your retirement savings. It's crucial to assess the type and level of cover you need and compare it with what's available outside super.

• How do I change super funds?

  To change super funds, you need to choose a new fund, review its insurance options, inform your employer, and fill out a 'choice of super fund' form. It's important to consider any exit fees and the impact on your insurance.

• I want to invest in an ethical super fund

  If you're interested in ethical super funds, look for funds that invest in socially responsible, sustainable, and ethical companies and projects. Research their investment policies and past performance to ensure they align with your values.

To make sure you get accurate and helpful information, this guide has been reviewed by Pascale Helyar, a member of Finder's Editorial Review Board.

Written by

Alison Banney

Editorial Manager, Money

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Alison is an editor at Finder and a personal finance journalist with over 10 years of experience, having contributed to major financial institutions and publications such as Westpac, Money Magazine, and Yahoo Finance. She is frequently quoted in media outlets like SmartCompany and SBS, offering expert insights on superannuation and money management. Alison holds a Bachelor of Communications in Public Relations and Journalism from the University of Newcastle, and has earned three ASIC RG146 certifications in superannuation, securities and managed investments and general financial advice, ensuring her expertise is fully aligned with ASIC standards. See full bio

Alison's expertise

Alison has written 574 Finder guides across topics including:

• Superannuation
• Savings accounts, bank accounts and term deposits
• Budgeting and money-saving hacks
• Managing the cost of living

Co-written by

Shubham Pandey

Writer

Shubham Pandey is a writer specialising in investing and superannuation with five years of experience across ANZ, Pedestrian Group, Valnet, BeInCrypto and AMBCrypto. He holds a Master’s degree in Finance with a minor in Communication and an ASIC RG 146 qualification, which ensures a solid understanding of the financial regulations that govern investment advice. See full bio