Super Funds Witness Massive Growth As Local Stocks and Equities Buyer! March 14, 2018, Sydney Australia: Lucrative post-tax dividend, impressive transparency and a good control over the fund seem to incentivize a massive growth in Australia’s superannuation fund pool this year. According to a research report from Credit Suisse, super funds now own around half of the Australian equity market. The hefty improvement is predicted to be a positive sign, depicting a fruitful correlation between the enormous superannuation fund pool and the country’s domestic stock market. The growth looks steady since 2013, when super fund was less than 40% of the total market. The growth picked up thereafter and now continues to maintain a strong momentum in 2017-18, the report says. Among all super funds, SMSFs have been the top choice among the keep investors. This year, SMSF super funds are estimated to gain around 20% market share in the segment, with the reminder owned by other institutional funds. As per the asx200list.com reports, total worth of the ASX200 market is around $1.737 trillionth while super funds in Australia are estimated to be worth of more than $700 billion of Aussie stocks. The demand is growing with a steady pace and is likely to follow the same momentum, given an increasing number of Australians now opting for different superannuation fund schemes. Speaking on the trend, David Smith, Sr Financial Advisor at Superannuation Rescue said, “We’ve been observing the trend very closely and find that the growth is not without a reason. After a careful consideration of all the perks and dividends, we find no other asset coming close to competing with super funds. These are undoubtedly among the most profitable saving plans. So demand is growing with a considerable pace.” “The country’s pension pool, which is getting enormous day by day, is now the number one buyer of Aussie equities and local stocks. We as a SMSF specialist advisor understand how important it is to make the right investment decision in any superannuation fund plan. The post-tax dividend that Aussie equities and stocks offer is among the best in the market. Besides, the government is taking all the measures to keep the market running smoothly. It means the investors have only a calculated risk when they buy stocks and equities with their superannuation fund”, he added. Last year also, a report released by the Association of Superannuation Funds of Australia indicated the same trend. They showed institutional funds to be in close competition of superannuation funds when it comes to the investment in domestic equities and stocks. However, it has also been observed that the offshore exposure of the super funds has increased, which no doubt will slow down their investment in the local stocks. But it still
owns a considerable share with the annual buying of almost $20 billion. And the reason for this is an enticing post-tax dividend of 5% offered by the local stocks. About Superannuation Rescue: A reliable SMSF advisor in Australia, Superannuation Rescue has long been guiding individuals and companies achieve their superannuation objective and great financial security. Other than a range of accounting and auditing service, the company offers complete SMSF service at affordable fees. To know more, visit http://www.superannuationrescue.com.au