Picking the right superfund pretty much defines your life after retirement. It is therefore imperative to do a thorough research before choosing one. While it will be vague to tell what superfund will suit you, we can provide a few guidelines to assess whether a superfund is right for you.

Here are a few criteria to evaluate super funds:

1. Ratings of superannuation rating agencies
The ratings offered by superannuation rating agencies on their websites can be a useful guide to compare super funds. The three most reliable rating agencies in Australian superfund market are Chant West, Selecting Super and Super Ratings.

2. Product disclosure statements (PDS)
Product disclosure statements are given before you choose the fund. PDS list down summary of the fund details viz. the fees, cost of insurance, number of investment choices, etc. Product disclosure statements of different funds can be compared to arrive at the one that suits you best.

3. Long-term performance
You must evaluate similar funds and check if the fund you are opting is giving better than the industry average or not.
Diversifying your investments among the better performing assets can save you from the risk of market crash. Spreading your portfolio will reap you better results.

4. Fees
You are making a mistake if you are paying higher fees for similar or worse performing funds. The low-cost funds like industry and corporate funds charge lower fees as these are non-profit funds. Retail funds charge higher fees as they also provide you financial advice pertaining to your funds. Wholesale funds run for profit and charge reasonably competitive fees but these can be joined via employer.

5. Insurance coverage
The extent of insurance coverage you receive with your super account and how much is it costing you, is a significant factor to consider. Generally, a super fund joined via your employer gives you better insurance coverage than individual funds.

6. Services
Check out the fund’s website to see what all services they offer. If seeking for an independent advice on selection of super, always choose a licensed adviser