Top 10 Balanced super funds ranked by risk and return

In volatile markets a super fund that provides a smoother investment journey is likely to be attractive for people who want to earn a decent return and still be able to sleep at night, especially as they approach retirement.

Top 10 funds based on volatility-adjusted performance over seven years to 30 June 2025

Source: SuperRatings. Returns to end June 2024, after fees and taxes. Volatility and return ranking based on Sharpe Ratio.

The risk-return trade-off

Members in the Australian Retirement Trust’s Super Savings product had the least ups and downs over the past seven years, topping the table for the second year running in 2025, with an average annual return of 8%.

Brighter Super made its first appearance – at number two with an average annual return of 8.3% – following the merger of LGIA Super, Energy Super and Suncorp Super.

In fact, only four of the 2024 top 10 remained on the list.

What pops out of the table above is that although Australian Retirement Trust topped the list, its 8.0% average annual return over seven years was not the highest. ESSSuper (8.4%) and Brighter Super (8.3%) both delivered higher returns over this period, but they did so by taking on a slightly higher level of risk. Conversely, the lowest return of the top 10 was 6.8% for both CareSuper and Prime Super which ranked in the middle of the pack by taking on slightly less risk.

As a mark of the increased volatility in investment markets, the top 10 Balanced funds (not adjusted for risk) in the year to June 2025 all achieved an average annual return of 11.2% or more. But over seven years, the average annual return for the median Balanced fund (not adjusted for risk) was around 7% per year.

Even so, it’s pleasing to see that funds can deliver a somewhat smoother investment journey as well as good long-term returns. The typical long-term return objective for Balanced super funds is to beat inflation by 3.5% per year. This has been achieved comfortably by the top 10, with inflation averaging around 2.5% a year over the past seven years.

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Australian Retirement Trust strategy delivers a smooth ride

Although super funds may have similar looking investment options – in this case they are all Balanced options (60–76% growth assets) – there is wide variation in how they invest members’ money. The funds with the highest absolute returns over seven years tend to hold a higher proportion of members’ savings in shares.

Australian Retirement Trust (ART) won SuperRatings’ Lifetime Returns category in its 2025 super fund awards. This award measures risk-adjusted returns across a member’s life from age 22 to 67, which allows for direct comparison of default lifecycle and single strategy options. ART has a default lifecycle option.

For many years, Australian Retirement Trust’s QSuper product was a leader in its focus on delivering a smooth ride for members, by reining in risk to deliver strong consistent returns. It did this by allocating around half of its equity exposure to long duration bonds, even if returns were lower in absolute terms during periods of high share market returns such as we’ve experienced lately. However, the QSuper fund closed as of 30 June 2024 following the merger of Australian Retirement Trust and QSuper and QSuper members now access the same options as other members.

One of the new entrants to the top 10, Aware Super won SuperRatings latest Smooth Ride award, for its inbuilt protection to ride out market volatility and was only just pipped at the post by ART for its Lifetime Returns award.

Retirees lose appetite for risk

Volatility is likely to remain a feature of investment markets over the coming year. Combined with people’s lack of appetite for volatility as they approach retirement and deal with cost of living pressures, providing a smooth ride is likely to remain a big consideration for super funds and their members.

“Funds have done an excellent job of both managing risk and educating their members on these issues, but more can be done in this space,” says Rappell.

Top 10 funds based on volatility-adjusted performance for previous years

For your reference we have included below the top 10 based on volatility-adjusted performance for previous years.