Investors still opting for safety first
The latest Canstar Cannex research has confirmed what many financial planners already know - that people are seeking safe havens for their investments, and product manufacturers are obliging by placing term deposit options within their offerings.
The Canstar Cannex superannuation star ratings report revealed that four out of the 11 funds rated five stars by the company were offering clients the option of putting part of their money into a term deposit to balance out their portfolio.
Commenting on research, Canstar research manager Chris Groth said that term deposits had become an increasingly popular option in self-managed superannuation funds but were now being offered more widely across all superannuation funds.
"Parking cash in super is something you may well do while waiting for the market to show signs of recovery," he said. "However, a term deposit has an added benefit as the rate is locked in."
Interestingly, the Canstar analysis showed that four of the 11 funds rated as five-star were the retail funds - Colonial First State's FirstChoice Personal Super, SunSuper, AMP's suite of Flexible Super products, and MLC's Masterkey offering.
The other five-star rated funds were AGEST Personal Super Plan, Media Super, Energy Super, VicSuper, Australian Super, First State Super and Recruitment Super.
AUTHOR
Staff Writer
Recommended for you
Australia’s largest licensee has seen the biggest number of adviser losses over the past week, while the expected wave of new entrants has boosted overall adviser numbers.
Iress has increased its forecast adjusted EBITDA by $5 million for the 2023/24 financial year in light of the sale of its platform business to Praemium and hinted at a return to dividend payments.
With just 30 per cent of Australians knowing their superannuation balance to the nearest $1,000, Findex has emphasised the role of financial advice in addressing the critical super knowledge gap.
New Insignia Financial CEO Scott Hartley has detailed the impact of the Godfrey Pembroke exit and the progress in resetting its financial advice model on its latest quarterly results.
