A growth super fund option invests predominantly in growth assets — primarily shares and property — with a smaller allocation to defensive assets. It targets higher long-term returns in exchange for accepting greater short-term volatility.
What Is a Growth Super Option?
A growth option typically holds 75–85% in growth assets:
| Asset Class | Typical Allocation |
|---|---|
| International shares | 30–40% |
| Australian shares | 25–35% |
| Infrastructure and property | 10–15% |
| Fixed interest (bonds) | 10–15% |
| Cash | 3–8% |
| Alternatives | 0–10% |
Growth assets (shares, property, infrastructure) drive the higher expected returns — but also cause the larger swings in value during market downturns.
Historical Returns — Growth Options
Based on APRA data and major fund disclosures:
| Timeframe | Approximate Annual Return |
|---|---|
| 1-year | Highly variable (−15% to +25% depending on market conditions) |
| 5-year average | 7–10% per year |
| 10-year average | 8–10% per year |
Top-performing growth options (AustralianSuper, Hostplus, Australian Retirement Trust) have averaged 8–10% per year over 10 years to 2025.
Past performance is not a reliable indicator of future performance.
Risk Profile
Growth options carry a higher Standard Risk Measure (SRM) than balanced options:
| Option | Typical Negative Years in 20 |
|---|---|
| Balanced | 2–3 |
| Growth | 3–4 |
| High Growth | 4–6 |
This means a growth option may produce a negative return approximately 3–4 years out of every 20. During a major correction (e.g., GFC, COVID-19 crash), a growth option may fall 20–30% or more in value before recovering.
The key principle: members who stay invested through downturns historically recover fully — and those who switch to cash or conservative during downturns often lock in losses.
Who Typically Chooses Growth?
A growth option is generally considered appropriate for:
- Younger workers (under 45–50) with 15+ years until retirement — enough time to ride out market cycles
- Members who can tolerate volatility without panicking and switching to defensive options during downturns
- Members prioritising long-term balance growth over short-term stability
It is generally less suitable for:
- Members within 5 years of retirement, where a major market fall has less time to recover
- Members with low risk tolerance who may be tempted to sell (switch to cash) during downturns
Growth vs High Growth
| Feature | Growth | High Growth |
|---|---|---|
| Growth assets | ~75–85% | ~90–100% |
| Expected return (10-year) | 8–10% | 8–11% |
| Volatility | High | Very High |
| Negative years in 20 | 3–4 | 4–6 |
The difference between growth and high growth is smaller than many members expect — both are share-dominated. High growth typically eliminates the remaining defensive allocation. See High Growth Super Fund Option.
The Long-Term Impact of Choosing Growth
The compounding return advantage of growth over balanced adds up materially. On a $100,000 balance with $10,000 per year in contributions over 20 years:
- At 7% (balanced): ~$640,000
- At 9% (growth): ~$790,000
The $150,000 difference arises purely from the ~2% return gap — without making any additional contributions. Actual results will vary.
For further reading: Balanced Super Fund Option, High Growth Super Fund Option, How to Change Your Super Investment Option. For advice on which option suits your circumstances, speak with a licensed financial adviser through MoneySmart.