Super funds set for 'subdued performance'
Superannuation funds will struggle to grow their returns in the coming months, it has been suggested.
According to recent research by SuperRatings, the average balanced super fund increased by two per cent during July 2010.
The rise, which comes on the back of three months of losses up to June 30th, means that the average super fund will receive a $2,000 boost for every $100,000 balance.
However, SuperRatings managing director Jeff Bresnahan argued that such a promising result may not continue.
He told the Herald Sun: "The mini-surge last year from the bottom of the global financial crisis (GFC) is set to hit a road block, despite July throwing up a healthy two per cent return.
"Short to medium-term performance numbers are expected to remain extremely subdued as we approach the third anniversary of the GFC in November."
Investors looking to boost their long-term returns may wish to compare term deposits in search of the best offers. Reserve Bank governor Glenn Stevens recently claimed that that while competition is waning in terms of lending, the banking market is still quite competitive on deposits.
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