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Comparing super funds: Know where and how your money is invested
Administration fees, advisor fees, platform fees, foreign exchange spreads, tax and insurance costs are part of the myriad of factors that need to be considered when comparing the performance of superannuation funds.
Each of the above factors influences the net performance and rate of growth your superannuation fund will produce over time and therefore needs investigation when considering which fund you will use as your retirement savings vehicle.
Unless all of the fees are considered and taken into account, its hard to compare performance returns of various funds.
The risk profile of the portfolio also has a significant impact on the returns of your fund.
More conservative risk profiles generally produce lower returns but more consistently, whereas more growth oriented funds generally produce higher returns, but with more volatility.
Another problem with comparing superannuation funds is the actual composition of portfolios with the same risk profile i.e the actual underlying investments of a balanced portfolio profile can vary between superannuation funds A and B.
The best way to overcome all of these problems is to invest in a manner that provides total transparency of fees, risk profile and underlying investments.
That is, invest in a fund that provides you with full visibility:
To all costs associated with running your fund.
To all the underlying investments within your fund.
Ensuring the portfolio is in line with your risk profile.
Providing 24/7 access to view your portfolio online.
It’s your money. So ensure you know to the cent how, where and why your money is invested.
It should make the process of saving for your retirement with superannuation more rewarding!
Please don’t hesitate to contact one of our award winning advisors if you’d like to discuss superannuation.