Best performing super funds

Every year, a fresh round of ‘best performing super funds’ tables appears in the media. They're useful, but they can also mislead – because a fund that tops a one-year table may rank in the middle of the pack over a decade, and a ‘winner’ in one risk category isn't comparable to a fund built for a different goal. 

The most useful question isn't which fund got the best return last year – it's how do I judge performance in a way that's relevant to me?

This guide explains what ‘best performing’ actually measures, what a good super return looks like, and how to compare funds on a like-for-like basis. 

We'll also look at CFS’ awarded options, presented factually. 

A ‘best performing super fund’ is simply a fund whose investment option delivered strong returns over a defined period, for a defined risk profile. The phrase only means something once you focus in on three things: the time period, the risk profile, and whether the return is measured net of (after) fees and taxes.

Change any one of those, and the rankings change too. That's why two credible ‘best of’ lists can name different funds – they're measuring different things. 

The return that matters to your account balance is the net return – what's left after investment fees, administration fees and taxes. Gross returns look bigger but don't reflect what actually lands in your account. 

Super is a multi-decade investment, so a single year tells you very little. Markets move in cycles: an option that surges in a strong year may lose ground in a volatile one. 

Long-term figures tend to smooth out that noise and reveal consistency. 

Consecutive years of strong performance by an option may be a sign of momentum. But if underlying investment market fundamentals were strong in those years, it’s also worth checking whether it consistently outperformed like-for-like options. 

Figures that reflect consistently strong performance over the longer term are generally more meaningful than a one-year chart-topping number.

A good super return is best judged net of fees, over the long term, and relative to your chosen risk profile. 

There's no universal ‘good number,’ because a higher-growth option is expected to deliver larger gains in strong years and will be more volatile when the market fluctuates, while a conservative option aims for steadier returns without the volatility of a growth fund.

To judge whether your return is good, compare it against funds with the same risk profile over the same period – not against a different category, and not against a single year. 

Over the long run, balanced and growth super options have historically aimed to outpace inflation by a meaningful margin – typically 3%.

Past performance is not a reliable indicator of future performance. There’s no guarantee that a fund at the top of this year's table will repeat its performance next year – and chasing last year's winner can mean switching at exactly the wrong time.

Long-term, net-of-fee returns – or returns after fees are taken out – matter more because:

• They reflect consistency, not luck. Ten-year figures show how a fund performs across both rising and falling markets. 
• They account for cost. A slightly lower headline return with much lower fees can beat a higher headline return over time.
• They match super's purpose. Your super is invested for decades, so the decade-long picture is the relevant one. 

Use one-year numbers for context, but they shouldn’t be the deciding factor.

To compare super funds properly, line them up like-for-like: make sure you’re comparing options with the same risk profile, over the same period, net of fees, with the full cost and list of features in front of you, as follows:

Compare balanced options with balanced options, growth with growth, conservative with conservative. Comparing a growth option against a conservative one isn't a fair contest – they're designed to meet different objectives, with different levels of risk built-in.

Prioritise long-term net returns. The longer the window, the more it reveals about consistency. Treat one-year figures as supporting context only.

The headline return isn't the whole story. Weigh up administration and investment fees, insurance cover and cost, investment choice, and the quality of digital tools and service. A fund's total value is derived from returns and cost and features.

You can also obtain guidance on how to compare funds from the Moneysmart website, cross-check using independent sources such as the ATO’s YourSuper comparison tool, and look at the rankings released by research or ratings agencies such as SuperRatings, Chant West and Canstar. 

Here's the comparison method at a glance:

‘Average super return’ usually refers to the typical net return of a balanced or growth investment option over a given period. Most Australians sit in a growth, balanced or default MySuper option, so these are the figures often quoted in the media.

Averages are a useful benchmark, but they're not a target – your own return depends on your investment option, fees and time in the market. 

For current long-term averages by risk category, check independent sources such as Moneysmart and the ATO’s super comparison tool. 

Always compare your option against the average for the same risk profile over the same time frame. 

CFS has been managing Australians' super for decades and offers a wide range of investment options across its FirstChoice range – more than 200 in total – with around 1 million members.

Our super options have regularly been recognised in independent industry awards and rankings. Read more about:

• How our MySuper Lifestage growth Lifestage 1975-79 option and our balanced Lifestage 1965-69 option delivered four consecutive years of double-digit growth to 30 June 20261.
• How our default MySuper Lifestage series ranked No.1 and No.2 for MySuper returns overall and delivered the best overall performance for working Australians up to 55 years of age over one, three and five years, according to the Chant West MySuper Performance Outcomes Survey to 30 June 20252.
• How our members benefit from some of the lowest administration fees available³. 
• Awards our super options have received.

 
These awards and figures are presented for information only – an award or a strong past return doesn't guarantee future performance.  

Want to put your super comparison skills into practice? See how we compare against others. Or see how we compare for fees and performance compared with like-for-like competitors in the ATO’s super comparison tool.

If you've got super in more than one place, bringing it together could make it easier to manage and compare performance. It may also save you from paying duplicate fees that will reduce your overall super balance over time.