How Various Superannuation Investment Options Performed
- A member of a superannuation fund?
At a glance:
- The Australian Securities and Investments Commission (ASIC), has published the average return for various superfund investment options for the year ended June 30, 2006.
- Consider whether you are satisfied with your super fund's investment strategy. - Contact us if you require any clarification or advice.
The figures published by the ASIC are a compilation of information provided by various Australian super-rating agencies that survey investment performance across retail, industry and corporate funds.
The results are based on several assumptions including that: a. 'Growth' options invest between 70-80% in shares or property; b. 'Balanced' options invest 60-70% in shares or property with the remainder in fixed interest or cash; c. 'Capital stable' invest 60-70% in fixed interest and cash with some investing in shares or property; and d. 'Capital guaranteed' are mandated by law to invest 100% within Australian deposit taking institutions or capital guaranteed life insurance policies.
The results are as follows:
According to the ASIC investing $50,000 in superannuation ten years ago at the lowest average growth rate of 7.6% would accumulate to $104,000 today.
This compares favourably with having invested the same sum during the same time at the highest average capital guaranteed rate of 5.9%, which would only amount to $89,000 today.
The performance of self-managed superannuation funds and defined benefit funds are not included in these results.
- Different superannuaiton investment strategies may yield different outcomes over time.
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