4 Tips for judging your Super Fund's Investment Performance
7 April 08
PJT
Your fund's investment performance usually makes a big difference to how much you will have to retire on.
No-one can reliably pick which fund will perform best. It's far more reliable to pick the right investment strategy and fund features with low fees, and take the ups and downs of investment performance in your stride.
Four tips for judging performance
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1 |
Look for a reasonable performance
It's a waste of time trying to pick next year's top performer. |
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2 |
Judge performance over at least 5 years
Super is a long-term investment, and short-term figures, such as the last 12 months or less, are all but useless. |
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3 |
Compare like with like
If a fund has 70-80% of its money in shares and property, compare it only with other similar funds, not funds with 60-70% of their money in cash and fixed interest. Higher fees do not guarantee you higher returns. |
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4 |
Try to use the same start and finish dates for each fund
Five-year performance from June to June will differ from January to January. |
For more Super tips and information, log on to the ATO site and follow the links to the Superannuation pages. If you would like to discuss the performance of your Super fund or perhaps you're not really sure on what you should be looking for, call PJT today on (07) 5413 9300.