Amid market chaos, most growth super funds deliver | Australian Markets
Most growth superannuation funds achieved double-digit returns final financial yr, buoyed by a robust efficiency by equities regardless of trade tensions and struggle within the Middle East, a new report says.
The median growth fund posted a 10.5 per cent return in 2024/25, superannuation advisor Chant West stated in analysis launched on Thursday.
“A tremendous result,” Chant West senior investment analysis supervisor Mano Mohankumar instructed AAP.
“It also comes on the back of two better than expected years, taking three-year performance in excess of 30 per cent.”
The efficiency is for what Chant West defines as growth funds, these with between 61 and 80 per cent of their funds in growth property.
“So if you’re in a high-risk option, you would have done even better,” Mr Mohankumar stated. “But I think in terms of risk, everyone has a different threshold.”
High growth funds – which Chant West defines as these invested 81 per cent to 95 per cent in growth property – posted a 11.7 per cent return, whereas funds all or almost all in growth property grew by 13.5 per cent.
The prime performing growth fund in 2024/25, in accordance with Chant West, was the legalsuper MySuper Balanced fund, which posted a 12.9 per cent return.
Vanguard’s Super SaveSmart Growth fund was quantity two at 11.8 per cent, adopted by CFS FirstChoice Growth, the Australian Retirement Trust Balanced and NGS Super Diversified, all of which posted a return of 11.2 per cent.
Mr Mohankumar stated long-term efficiency was far more important than a single yr’s returns.
He added that a key lesson from the financial yr was the resilience of share markets and the significance of sustaining that long-term focus, slightly than getting distracted by short-term volatility.
The Australian market dropped 13.9 per cent from mid-February to early April as US President Donald Trump’s tariffs and Middle East preventing unnerved traders.
However, the ASX rebounded from there and by early June had made up all it had misplaced, closing Tuesday at report ranges.
“We appreciate that everyone has a different threshold for how much they can see their account balances down during periods of market turbulence, but we’d say during periods of market volatility, riding it out far more often than not pays off in the long run,” Mr Mohankumar stated.
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