5 Best Superannuation Investment Options for Growth in 2026

Last Updated: September 30, 2026

If your superannuation is invested for the long term, the investment option you choose can have a significant impact on your retirement outcome.

But there is no single “best” superannuation investment option.

The appropriate option depends on factors including your age, investment timeframe, financial circumstances, objectives and ability to tolerate investment losses.

For someone with decades until retirement, a portfolio with a high allocation to growth assets may be appropriate. Someone approaching or already in retirement may have different requirements, particularly if they expect to draw on their super in the near future.

The important question is therefore not:

“Which super option has performed best?”

It is:

“Which investment strategy is appropriate for my circumstances and objectives?”

Understanding Growth, Defensive Assets and Risk

Superannuation investment options generally invest across a combination of growth and defensive assets.

Growth assets commonly include:

They generally have greater exposure to market movements and can experience significant falls in value over shorter periods.

Defensive assets commonly include:

These generally provide greater stability but usually have lower long-term growth expectations than shares.

The longer your investment timeframe, the more opportunity you generally have to recover from periods of market volatility. However, a long timeframe does not eliminate investment risk.

Your investment strategy should reflect both your capacity to tolerate losses and your ability to remain invested when markets fall.

Five Growth-Oriented Superannuation Investment Options

Rather than ranking investment options, it is more useful to understand the main approaches available.

Investment option Typical characteristics Potential advantages Important considerations
High growth Very high allocation to growth assets Greater exposure to long-term growth assets Larger short-term falls
Indexed growth Primarily index-tracking investments Generally lower investment costs and broad market exposure Returns broadly follow the market index
Lifestage Asset allocation changes with age Automatic changes over time May not reflect your individual circumstances
Sustainable/ethical Portfolio incorporates specified ESG or ethical screens Can align investments with particular preferences Different screens can produce different portfolios
Private markets Exposure to unlisted assets such as private equity and infrastructure Access to different sources of return and diversification Higher complexity, fees and liquidity considerations

These categories can overlap. For example, a high-growth option may also be indexed, sustainable or contain private-market investments.

1. High Growth Options

High-growth options generally have the highest allocation to growth assets.

They may hold substantial exposure to Australian and international shares, property, infrastructure and other growth investments.

The objective is generally to provide higher long-term growth, accepting that the balance can fall substantially during market downturns.

For example, an investor with a long investment horizon may be able to tolerate a significant temporary fall because they do not expect to access their super for many years.

The important consideration is whether you can stay invested through those periods, rather than simply whether you are comfortable with the expected long-term return.

A high-growth option is not automatically appropriate simply because you are young.

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2. Indexed Growth Options

Indexed options generally aim to track a particular market index rather than relying on an active manager to select investments with the objective of outperforming that index.

One of their potential advantages is cost.

Because index funds generally require less active security selection and portfolio management, their investment costs can be lower than many actively managed alternatives.

Over long periods, costs matter because every dollar paid in investment fees is a dollar that is not remaining invested.

However, indexed investing does not mean risk-free investing.

If the underlying market falls, an indexed option will generally fall with it.

The relevant comparison is therefore not simply active versus passive, but the overall portfolio, investment strategy, diversification, fees and after-cost outcomes.

3. Lifestage Investment Options

Lifestage strategies automatically adjust the asset allocation as you get older.

A younger member may initially have a high allocation to growth assets. As the member approaches a predetermined age, the strategy progressively increases its allocation to defensive assets.

The attraction is simplicity.

You do not have to decide when to reduce investment risk because the strategy makes changes according to its predetermined rules.

The limitation is that people of the same age do not necessarily have the same financial circumstances.

For example, two 60-year-olds may have very different:

A lifestage strategy may therefore be useful for some members but less suitable for others.

4. Sustainable and Ethical Growth Options

Sustainable and ethical investment options incorporate environmental, social or governance considerations into their investment process.

The important point is that “sustainable”, “ethical” and “ESG” do not describe one standard investment approach.

Different funds can apply very different screens.

One option might exclude tobacco, gambling and weapons manufacturers. Another may focus on climate-related factors, while another may use a broader ESG scoring methodology.

Before selecting one, look at the fund’s:

The question is not simply whether an option has an ethical label. It is whether you understand what the label actually means and whether the resulting portfolio suits your objectives.

5. Private Markets and Alternative Investments

Some superannuation options include investments in unlisted assets such as:

These investments can provide diversification and exposure to assets that are not available through traditional listed markets.

However, they also introduce additional considerations.

Unlisted assets are not continuously traded on an exchange, which can make them less liquid. Their valuations may also be based on periodic valuations rather than daily market prices.

This can make reported returns appear smoother than listed markets, but smoother valuations do not necessarily mean lower economic risk.

Private-market investments can also have higher fees and greater complexity.

For members considering these options, understanding the underlying assets and liquidity arrangements is particularly important.

Don’t Choose Your Super Option Based on Last Year’s Return

One of the easiest mistakes is choosing an investment option because it was recently one of the strongest performers.

Investment markets move in cycles.

An option that has performed strongly over the previous year may have benefited from particular market conditions that do not persist.

Instead of asking:

“Which option returned the most last year?”

consider:

Past performance can provide useful information, but it should not be treated as a forecast of future returns.

Fees Matter — But Don’t Look at Fees in Isolation

Fees are an important part of comparing superannuation investment options.

Costs can include:

A seemingly small difference in annual investment costs can become significant over a long investment period.

However, the lowest-cost option is not automatically the appropriate option.

A meaningful comparison should consider the whole portfolio and the outcome after fees, rather than selecting an option simply because it has the lowest published investment fee.

For example, an actively managed option may charge more than an indexed option. The relevant question is whether the additional cost is justified by the investment strategy and the outcome it is designed to deliver.

Should You Change Your Super Investment Option?

Changing investment options is generally straightforward through most super funds.

But changing an investment option because of a recent market movement can be very different from changing it because your circumstances or investment strategy have changed.

Before switching, consider:

1. Why are you changing?

Are you responding to a change in your circumstances, or reacting to recent performance?

2. What are you moving into?

Understand the new option’s asset allocation, investment strategy, risk level, fees and liquidity.

3. What are you moving out of?

Look beyond recent performance. Understand why the existing option has performed the way it has.

4. What happens to the underlying investments?

Depending on how your super fund operates, switching investment options can involve the fund buying and selling underlying assets and can have tax and transaction-cost implications within the fund.

This is different from personally selling shares outside super and personally incurring a capital gains tax liability.

Ask your super fund how investment switches are implemented and whether any buy/sell spreads or other transaction costs apply.

5. Does the new strategy fit your overall financial plan?

Your super should not be considered in isolation from your other investments, debt, property and retirement income requirements.

Tax and Superannuation Investment Options

One of the major advantages of superannuation is its concessional tax environment.

However, the tax treatment depends on factors including whether you are in accumulation or retirement phase and the type of income or gains generated by the fund.

Generally, investment earnings in accumulation phase are taxed at concessional rates, subject to the applicable rules.

Retirement phase income streams can receive different tax treatment, subject to the relevant superannuation rules and transfer balance requirements.

Importantly, members should not assume that changing investment options creates a personal CGT liability in the same way that selling personally owned investments does.

The fund’s tax position, investment structure and accounting arrangements are relevant.

This is one reason why comparing super options solely on their published investment return can be misleading.

The Biggest Risk May Be Your Own Behaviour

Choosing an appropriate investment strategy is only part of the equation.

You also need to be able to stick with it.

Market falls are an unavoidable part of investing in growth assets.

Imagine you have $200,000 invested in a growth-oriented option and the market falls by 15%.

Your balance could fall to approximately $170,000.

That can feel uncomfortable.

But selling at that point changes the investment strategy. You are no longer simply experiencing the market decline — you are making a decision about when to exit and, eventually, when to re-enter.

If markets subsequently recover and you remain in cash, you may miss some or all of that recovery.

This is why an investment strategy should be designed around your capacity and willingness to tolerate volatility before the next market downturn, rather than during it.

Common Behavioural Traps

Loss aversion

Losses can feel more painful than equivalent gains feel rewarding, encouraging investors to sell after markets have fallen.

Recency bias

Recent performance can appear more important than longer-term evidence.

Herding

When markets fall and everyone is talking about selling, doing nothing can feel harder than making a change.

Performance chasing

Investors may move into last year’s strongest-performing option without considering why it performed strongly or whether the underlying conditions will continue.

A disciplined investment strategy is intended to reduce the influence of these reactions.

A Practical Framework for Reviewing Your Super

Rather than checking your super balance every time markets move, consider a structured review.

Review your circumstances

Has anything changed regarding your:

Review your investment strategy

Does your current asset allocation still reflect your objectives and timeframe?

Review costs

Compare the total costs of your existing option with relevant alternatives.

Review diversification

Understand what you actually own across your super and other investments.

Review performance properly

Compare performance over appropriate periods and against the relevant benchmark rather than focusing on the latest 12 months.

Review when circumstances change

A change in circumstances can justify a review. A bad month in share markets does not necessarily mean your investment strategy needs to change.

Frequently Asked Questions

What is the difference between growth and high-growth super options?

The main difference is the allocation to growth assets.

A high-growth option generally has a greater exposure to shares and other growth assets than a conventional growth option. This can provide greater exposure to long-term growth but also means larger potential short-term losses.

The actual allocation varies between super funds, so check the relevant investment option’s disclosure document rather than relying on the label.

Is an indexed super option better than an actively managed option?

They are different investment approaches.

Indexed options generally aim to deliver market returns at a relatively low cost. Active managers aim to outperform their benchmark or manage the portfolio differently from the market.

The appropriate comparison should include the investment strategy, diversification, fees, risk and after-cost performance rather than assuming that either approach is universally preferable.

How do I assess the risk of my super investment option?

Start with the fund’s Product Disclosure Statement and investment menu.

Look at:

Then consider whether the option is consistent with your own circumstances and investment timeframe.

Should I choose a high-growth option if I am young?

Age is one consideration, but it is not the only one.

Your investment timeframe, other assets, financial circumstances, objectives and ability to tolerate losses are also relevant.

Someone with a long timeframe may have greater capacity to tolerate market volatility, but that does not automatically make a high-growth strategy appropriate.

Are superannuation investment earnings tax-free?

Not always.

Superannuation has concessional tax treatment, but the applicable treatment depends on factors such as whether the fund is in accumulation or retirement phase and the nature of the investment income.

The rules are complex and can change, so current ATO and superannuation rules should be considered when making decisions.

Where can I compare superannuation investment options?

Start with the super fund’s Product Disclosure Statement, investment menu and fee information.

You can also compare funds and investment options using independent resources such as ASIC’s Moneysmart and the Australian Taxation Office for relevant tax and superannuation information.

However, comparing published returns does not replace assessing whether an investment strategy is appropriate for your individual circumstances.

The Veyron Approach to Superannuation

At Veyron, we don’t believe choosing a superannuation investment option should come down to finding last year’s top performer.

The focus should be on building an investment strategy that makes sense for your circumstances, timeframe and objectives.

That means looking at the whole picture:

Sometimes that may mean a high-growth strategy.

Sometimes it may mean a diversified growth portfolio with indexed investments.

Sometimes reducing investment risk may be appropriate.

The important point is that the strategy should be driven by your circumstances rather than a recent performance table.

Want to review your superannuation strategy?

If you are unsure whether your current superannuation investment option is appropriate, Veyron can help you understand the strategy, costs, risks and alternatives.

Book a conversation with Veyron to review your superannuation and broader financial strategy.

Get in touch with Veyron

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General information only. This article does not take into account your objectives, financial situation or needs and is not personal financial advice. Superannuation, taxation and investment laws are complex and subject to change. Before making a decision about your superannuation investment strategy, consider the relevant Product Disclosure Statement and whether the strategy is appropriate for your circumstances. Where appropriate, obtain personal financial advice.

Frequently Asked Questions

What is the difference between a growth and high-growth superannuation option?

A growth option typically holds around 70% in growth assets like shares and property, while a high-growth option may hold 85% or more. High-growth options aim for higher long-term returns but come with larger short-term price swings. Your choice depends on your investment horizon and risk appetite. A financial adviser can help you assess which level of risk is appropriate for your circumstances.

How do I assess the risk profile of my superannuation investment?

Start by reviewing your super fund’s Product Disclosure Statement (PDS), which outlines the option’s asset allocation, risk level, and target returns. Consider your investment horizon: if you have decades until retirement, you may tolerate more market volatility. If you are closer to retirement, defensive assets may suit you better. A tailored financial advice session can help match your superannuation investment options to your comfort with risk.

How does the Australian Taxation Office (ATO) treat superannuation investment earnings?

Earnings on investments held inside super are taxed at a concessional rate of up to 15% while you are in the accumulation phase. Once you start a retirement phase income stream, earnings supporting that income are generally tax-free. These rates are set by the Australian Taxation Office (ATO) and can change. Check the ATO website or speak with a tax professional for current rules.

What should I look for in a Product Disclosure Statement (PDS) when choosing an investment option?

The Product Disclosure Statement (PDS) is your key document for comparing superannuation investment options. Look for the investment objective, asset allocation ranges, fees and costs, risk level, and minimum suggested investment timeframe. Check how the option has performed against its benchmark over five and ten years. If the PDS is hard to interpret, a financial adviser can break it down for you.

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