High growth super funds — more risk, more growth

The information in this table is based on data provided by SuperRatings Pty Limited ABN 95 100 192 283, a Corporate Authorised Representative (CAR No.1309956) of Lonsec Research Pty Ltd ABN 11 151 658 561, Australian Financial Services Licence No. 421445. In limited instances, where data is not available from SuperRatings for a product, the data is provided directly by the superannuation fund.

*Past performance data and fee data is for the period ending October 2024

What is a high growth super fund?

A high growth super fund has more money invested in growth assets such as shares and property, and less invested in lower risk assets like cash and bonds.

A high growth fund aims to achieve higher investment returns for members over the long term. However, with higher returns can also come increased risk and volatility in the short term.

There's no exact industry standard around what is classed as a high growth super fund. Finder classifies growth super funds as those with more than 80% of their asset allocation in growth assets like shares.

What are the best high growth super funds?

This is a list of the best-performing high growth super funds based on average annualised return over the last 10 years:

This data is based on the 10-year period to October 2024.

Compare a wider range of the best-performing super funds.

Types of high growth super fund options

Most super funds offer multiple investment options targeting different risk levels and growth rates. Here are 3 different ways you could choose a high growth super option.

1. Choose a diversified high growth investment option. Most super funds offer a balanced option, but give you the option of switching to a diversified high growth option. A diversified high growth fund invests mainly in growth options, but spreads the investments across a mix of asset classes and industries.
2. Choose a high growth single section investment option. Unlike diversified investment options, single sector investment options only invest in the one asset class. Because they're not diversified, some single sector investment options are very high growth options (diversification works to reduce your investment risk by not keeping all your eggs in the one basket).
3. Choose a super fund that only has high growth options. This is less common, but some super funds only have growth options. Spaceship Super, for example, only has 2 fund options. Both allocate more than 90% of their investments to growth assets like international shares.

What if I have a MySuper fund?

Most Australians have their super invested in a MySuper or lifestage fund. These are the default, low-fee super products you get if you don't choose a specific option.

It's difficult to compare MySuper products because the investment allocations differ by fund, and some of them change your investment mix as you get older.

If you have a MySuper product, check the asset allocation (the percentage invested in growth or defensive assets). Compare the fund's performance to the performance of the growth option if you're interested in switching to a higher risk, higher growth fund.

High growth vs balanced performance super fund performance

Looking at some of the biggest super funds, this table shows the average annual returns over the past 10 years for both the fund's balanced and high growth options.

Data is from October 2024.

Who is a high growth super fund most suitable for?

High growth super fund options are higher risk. They are designed primarily for people with longer term plans (7 years or more).

A high growth super find might work for you if:

You have a higher risk appetite

Because high growth funds have more exposure to shares, they can be more volatile in the short term (1–3 years). This is because the price of shares fluctuates a lot from day to day and the share market is very sensitive and quick to react to global news (as we saw during COVID-19 when the stock market crashed more than 30%). However, while there may be more volatility in the short term, shares continue to be one of the best investments over the long term (5–10 years).

You're young

It's generally recommended that you invest in a high growth fund in your 20s, 30s and even 40s, then change this to a balanced fund when you get older. This is because when you're young, you have plenty of time to ride out any short-term market volatility.

If you're only a couple of years away from retirement you have much less time for your super to recover if there was a market crash.

You're seeking better returns

If you're not happy with how your super fund is performing, or believe you need higher growth to build your retirement worth, then a high growth super fund might be a good option. to achieve better returns. Just remember there may be a bit more volatility along the way.

Pros and cons of high growth super funds

Pros

• High growth super funds often achieve better returns over the long term.
• High growth super funds are readily available and most major super funds already offer a high growth option.
• The fees are often quite similar between high growth super funds and balanced super funds.

Cons

• High growth super funds aren't the default investment option, so you'll need to proactively opt for this option when joining your fund.
• High growth super funds can come with more investment risk and increased volatility, especially in the short term.

How to switch to a high growth super fund

If you want to switch to the high growth investment option offered by your current super fund, you can easily do this via the fund's mobile app or the online member portal.

You can switch investment options at any time and you may even have the choice to split your super up between different options if you don't want it all in the high growth fund.

To make sure you get accurate and helpful information, this guide has been edited by Richard Whitten and reviewed by Ryan Watson, a member of Finder's Editorial Review Board.

Written by

Alison Banney

Editor

Alison Banney is the money editorial manager at Finder. She covers all areas of personal finance, and her areas of expertise are superannuation, banking and saving. She has written about finance for 10 years, having previously worked at Westpac and written for several other major banks and super funds. See full bio

Alison's expertise

Alison has written 625 Finder guides across topics including:

• Superannuation
• Savings accounts, bank accounts and term deposits
• Budgeting and money-saving hacks
• Managing the cost of living