When comparing super funds, it's important to consider a range of factors to determine the most suitable option for you - and comparing ethical funds is no different. Here are some of the key areas to focus on when choosing between funds:
Investment options
This is where ethical investments come in. Even if you've chosen a certified ethical super fund, it's still important to do your research on the fund's investment strategy and options offered to ensure you understand where it sits on the risk spectrum, what asset classes you would be investing in and how much of your super would be going to each asset class.
Investment performance
One of the most important factors of your super fund is the investment return that it makes, known as its performance. Even a slight variation in performance has the potential to significantly impact your super balance over the life of your career. Just remember that past performance isn't necessarily an indicator of future performance.
Fees
Funds with lower fees can seem more appealing, for obvious reasons. But, it's important to keep in mind that they may not necessarily offer as much value as funds with higher fees and stronger performance. Some of the fees you may be charged by your super fund include administration fees, investment fees, switching fees and insurance premiums.
Insurance options
The three different types of insurance that super funds commonly offer are life insurance, total and permanent disability insurance, and income protection insurance. If these are important to you, consider if your preferred super fund can offer you what you need.
Customer service
Some funds will offer services such as financial advice. Keep in mind that these services typically come with an additional cost.
