Looking for the best mutual funds Australia has to offer in 2025? It can be a bit of a maze trying to figure out where to put your money. This article breaks down some of the top contenders, so you can get a clearer picture of your investment options. We’ll go through a few funds that are making waves, looking at what makes them tick and why they might be worth considering for your portfolio. It’s all about finding the right fit for your financial journey.
Key Takeaways
- Managed funds in Australia are regulated by ASIC, ensuring transparency and investor protection.
- Fees for managed funds typically range from 0.5% to 2% annually, plus potential transaction and administration costs.
- Recent market volatility has impacted fund performance, but many are focused on stable growth for 2025.
- Managed funds offer diversification and professional management, contrasting with direct stock investing’s higher individual risk.
- Funds are increasingly looking at sectors like technology, healthcare, and clean energy for growth opportunities.
Glenmore Australian Equities Fund
Alright, let’s talk about the Glenmore Australian Equities Fund. This one’s got a bit of a reputation for doing pretty well in the Australian managed funds scene. Their main game is looking for Australian companies that are listed on the stock exchange and have good growth potential. The goal is pretty straightforward: try and do better than the S&P/ASX All Ordinaries Accumulation Index. They reckon their strategy is all about finding companies with earnings that are set to grow, and they do a fair bit of research to back that up.
The fund managers aim to build a portfolio that balances making money with keeping risk in check.
Here’s a look at how it’s performed over a few periods, based on figures from the end of 2024:
| Time Period | Annualised Return |
|---|---|
| 1-Year | 20.85% |
| 3-Year | 10.06% |
| 5-Year | 16.04% |
So, if you’d chucked $100,000 in five years ago, hypothetically, it could have grown to around $219,391 by the end of 2024. Keep in mind, though, that these numbers don’t account for things like fees, taxes, or the ups and downs of the market, which can definitely change the actual outcome.
Like any investment in shares, there are risks involved. You’ve got market risks, where the whole market can dip for all sorts of reasons. Then there are specific risks tied to individual companies – maybe their management makes a bad call, or their industry just isn’t doing well anymore. Sometimes, it can be tricky to sell certain assets quickly without affecting the price, especially when things get a bit shaky. And, of course, the fund’s performance really hinges on the decisions the managers make.
It’s always a good idea to have a good think about your own comfort level with risk and what you’re trying to achieve with your money before you jump in. Understanding these potential downsides helps you set realistic expectations.
On the upside, Glenmore operates under the ASIC regulatory framework, which means they have to be pretty transparent. They provide a detailed investment statement covering their strategy, fees, and risks, and they get audited regularly. This is meant to give investors a decent level of protection and clarity.
ECP AM All Cap Fund
The ECP AM All Cap Fund is a bit of a go-getter when it comes to Australian shares. It’s designed to hunt down companies with solid earnings growth, aiming to do better than the S&P/ASX All Ordinaries Accumulation Index. They’re not just looking at the big, established players either; the fund casts a wide net, including mid-cap opportunities. This broad approach is meant to spread the risk around and grab growth wherever it pops up across different sectors.
The fund’s strategy focuses on identifying companies poised for strong, consistent returns through active management and thorough research.
Here’s a snapshot of how it’s been doing:
| Period | Return |
|---|---|
| 1 Year | 18.73% |
| 3 Years (annualised) | 12.09% |
| 5 Years (annualised) | 14.55% |
If you’d put $100,000 in this fund, by the end of 2024, you’d have seen it grow to roughly $118,730 after one year, $133,970 after three years, and a handy $197,506 after five years. Pretty decent, right?
Of course, like any investment, there are risks involved. We’re talking market ups and downs, specific company issues, and how easy it is to buy or sell your stake. It’s always a good idea to check if this aligns with your own comfort level for risk and what you’re hoping to achieve with your money.
The fund operates under ASIC regulations, meaning it’s supposed to be transparent and look after investors. Regular checks are in place to keep things honest and above board.
Smallco Broadcap Fund
The Smallco Broadcap Fund is an interesting option if you’re looking for a mix of stability and growth in your Australian share investments. It’s not just about picking the biggest companies or the smallest ones; it tries to get a bit of both. The idea is to spread the investment across large, more stable companies and then add in some smaller ones that have potential to grow a lot.
This balanced approach aims to smooth out the ride while still capturing upside.
Here’s a look at how it’s been doing:
| Period | Return |
|---|---|
| 1 Year | 15.43% |
| 3 Years (annualised) | 10.89% |
| 5 Years (annualised) | 12.13% |
So, if you put $100,000 in, after five years, it could be worth around $161,300, assuming those returns keep up. That’s a decent boost.
What makes Smallco tick is their focus on companies that seem to have a good chance of growing their earnings over the long haul. They’re not just chasing fads; they’re looking for solid businesses. By mixing big, reliable companies with smaller, more dynamic ones, they hope to create a portfolio that can handle different market conditions.
Of course, no investment is without its risks. With this fund, you’ve got the usual market ups and downs, economic shifts, and specific risks tied to smaller companies that might not be as easy to buy or sell quickly. It’s worth thinking about whether this kind of mix fits with what you’re hoping to achieve with your money over time.
Overall, it seems like a fund designed for investors who want a bit of everything – the steadiness of larger companies and the potential kick from smaller ones, all managed with an eye on long-term earnings.
Selector High Conviction Fund
The Selector High Conviction Fund is all about picking a select group of Australian companies that they reckon have the best shot at growing big time. They’re not trying to track the whole market; instead, they’re aiming to beat the S&P/ASX 200 Index by putting their money into a smaller number of stocks they really believe in.
Their strategy is pretty straightforward: find companies with solid foundations and heaps of growth potential. It’s an actively managed fund, meaning their team does a lot of research to try and get the best returns possible, balancing growth with keeping the risks manageable. They’re not just throwing money around; it’s a carefully chosen bunch of companies.
Here’s a look at how it’s been doing:
| Period | Return |
|---|---|
| 1 Year | 20.45% |
| 3 Years | 14.36% |
| 5 Years | 16.90% |
If you’d put $100,000 in at the start of 2024, by the end of the year, it would have been worth around $120,450. Over three years, that same $100,000 would have grown to about $136,360, and after five years, it would be sitting at roughly $169,000.
It’s worth noting that this fund is all about concentration. Having fewer stocks means they can really focus on the ones they think will perform best. This approach can lead to great returns, but it also means there’s a bit more risk involved compared to a fund that spreads its investments across hundreds of companies. So, if you’re okay with a bit more risk and are looking for strong growth from a focused selection of Australian businesses, this fund might be worth a look. They stick to ASIC rules, so you know they’re playing fair and keeping things transparent.
Forager Australian Value Fund
The Forager Australian Value Fund is all about finding those hidden gems in the Australian market – companies that are trading for less than they’re actually worth. It’s a bit like bargain hunting, but for stocks. They use a bottom-up approach, meaning they really dig into the details of individual companies rather than just looking at the big picture.
Their main goal is to find undervalued businesses with the potential to grow, aiming to outperform the S&P/ASX 100 Index. It’s a strategy that’s seen them do pretty well over the years, even when the market’s been a bit shaky.
Here’s a look at how a hypothetical $100,000 investment might have performed:
| Time Period | Hypothetical Value (End) |
|---|---|
| 1 Year | $115,500 |
| 3 Years | $137,200 |
| 5 Years | $179,671 |
This approach means they’re not just chasing the latest trends. They’re looking for solid companies that might be overlooked by others, giving them a bit of a safety net and a better chance at long-term growth. It’s a disciplined way to invest, focusing on quality and value.
Of course, like any investment, there are risks involved. Things like market ups and downs, or specific issues with a company, can affect returns. It’s always a good idea to think about whether this kind of investment fits with your own financial goals and how much risk you’re comfortable with.
The fund sticks to ASIC regulations, so you know they’re playing by the rules when it comes to transparency and looking after investors. Regular checks and clear reporting are part of the deal.
Hyperion Australian Growth Fund
When you’re looking for a fund that really digs into Australian companies with solid growth prospects, the Hyperion Australian Growth Fund is definitely one to check out. They’re all about finding businesses that aren’t just doing okay, but have the potential to really take off. It’s not just a random pick-and-mix; they have a pretty disciplined way of going about it.
Their main goal is to get you long-term capital growth. They do this by investing in Australian companies that they reckon have strong earnings potential. Think companies that are leaders in their field, have smart management, and can keep growing their profits year after year. They’re not afraid to put a decent chunk of money into a few select companies they really believe in, rather than spreading it too thin.
Here’s a look at how it’s been tracking:
| Time Period | Annualised Return |
|---|---|
| 1 Year | 16.22% |
| 3 Years | 13.50% |
| 5 Years | 15.45% |
If you’d put $100,000 in this fund, based on those numbers, it would have grown like this:
- 1 Year: $116,220
- 3 Years: $135,000
- 5 Years: $154,500
It’s important to remember these are hypothetical figures and don’t include things like fees or taxes, which will affect your actual returns. Plus, markets can be a bit wild sometimes.
Hyperion’s strategy is pretty straightforward: find quality companies with good management and a clear path to growth. They focus on businesses that can keep expanding their earnings and have a solid position in their industry. This means they’re looking for companies that can adapt and keep performing, even when the market gets a bit bumpy.
Like any investment, there are risks involved. You’ve got your usual market risks, and because they tend to concentrate their investments, there’s also a risk if a particular sector or company doesn’t do as well as expected. It’s always a good idea to think about your own risk tolerance and how long you plan to invest before jumping in.
First Sentier Wholesale Geared Share Fund
Looking for a fund that aims to boost your returns by using a bit of leverage? The First Sentier Wholesale Geared Share Fund might be one to check out. This fund basically uses borrowed money, or ‘gearing’, to increase its investment in Australian shares. The idea is that in a rising market, this gearing can really amplify your gains compared to a fund that just invests your capital directly.
They’re actively managed, meaning a team is constantly looking for Australian companies they think have good prospects. They aim to beat the S&P/ASX 200 Accumulation Index over the long haul. This approach involves picking stocks with solid fundamentals and a good position in their industry, while also spreading investments across different sectors to manage risk.
Here’s a look at how a hypothetical $100,000 investment might have performed:
| Time Period | Return |
|—|—|—|
| 1 Year | $127,450 (27.45%) |
| 3 Years | $154,470 (15.62% p.a.) |
| 5 Years | $222,815 (17.18% p.a.) |
It’s important to remember that gearing does come with extra risk. While it can boost returns when the market goes up, it can also magnify losses if the market falls. So, it’s definitely a fund for investors who are comfortable with a higher level of risk and have a longer-term investment horizon.
The fund’s strategy is built around using borrowed funds to increase exposure to Australian equities. This means it’s designed to capture more upside during market rallies, but it also means potential for greater downside if markets turn south. Investors need to be clear on their own risk tolerance before considering this type of investment.
First Sentier also keeps things transparent, with the fund being ASIC compliant, which means they follow strict rules for investor protection and disclosure. Regular audits are part of their process to maintain trust and operational integrity.
Hyperion Australian Growth Companies Fund
When looking at Australian shares, the Hyperion Australian Growth Companies Fund is definitely one to put on your radar for 2025. This fund really focuses on finding those Australian companies that are doing innovative things and are leaders in their field. The goal is pretty straightforward: to do better than the S&P/ASX 300 Total Return Index. They’re all about long-term growth, picking quality businesses that have something special that keeps them ahead of the pack. It’s not just about picking a lot of stocks; they tend to hold a more concentrated portfolio, which means they really believe in the companies they’ve chosen.
Their investment strategy is pretty clear. They look for companies that are growing their earnings, have business models that can scale up, and are already market leaders. It’s a quality-over-quantity approach, and by concentrating their investments, they aim to really capture value and avoid getting too spread out across sectors that might not be performing as well.
Here’s a look at how the fund has performed, based on figures up to December 31, 2024:
| Time Period | Annualised Return |
|---|---|
| 1 Year | 20.31% |
| 3 Years | 13.45% |
| 5 Years | 15.89% |
If you’d put $100,000 into the fund, here’s what that could have looked like:
- 1 Year: Your $100,000 could have grown to $120,310.
- 3 Years: It could have reached $143,550 (that’s a 13.45% annual return).
- 5 Years: Your initial $100,000 might have become $209,007 (a 15.89% annual return).
Of course, like any investment, there are risks involved. You’ve got your usual market risks, and because the fund is quite concentrated, there’s a risk if a few key companies or sectors don’t do well. They also rely on financial forecasts, which can be tricky. So, it’s important to think about whether this fits with your own comfort level for risk and what you’re hoping to achieve long-term.
The fund operates under ASIC regulations, which means they have to be pretty transparent and follow strict rules. This is good for investor confidence, as it means there are independent checks and balances in place to protect your money and make sure they’re playing fair. It’s all about maintaining high standards and looking after investor interests.
First Sentier ex-20 Australian Share Fund
Looking for Australian shares but want to steer clear of the biggest players? The First Sentier ex-20 Australian Share Fund might be worth a look. This fund focuses its investments on companies outside of the top 20 on the ASX. The idea here is to find quality mid and large-cap stocks across different industries that might not be getting as much attention as the big names.
They use a pretty disciplined approach, digging into research to try and find those underappreciated growth opportunities. By picking stocks actively, they aim for solid long-term returns and want to spread the risk around the portfolio.
Here’s a snapshot of how it’s been doing:
| Period | Return |
|---|---|
| 1 Year | 15.42% |
| 3 Years | 11.68% |
| 5 Years | 13.97% |
The strategy is all about finding companies with strong foundations and business models that can grow. By not investing in the ASX 20, they reckon they can uncover value in areas that aren’t as heavily researched, which can help balance out the whole portfolio.
Of course, like any investment, there are risks involved. You’ve got your usual market ups and downs, potential for certain industries to be more dominant in the fund, and liquidity issues if they need to sell something quickly. It’s always a good idea to check if this fits with your own comfort level for risk and what you’re hoping to achieve financially.
This fund offers a different angle on Australian shares, aiming for steady growth and diversification by looking beyond the most well-known companies. It’s about finding potential where others might not be looking as closely.
First Sentier keeps things above board, following ASIC rules to protect investors. They do regular checks and are pretty open about what they’re doing, which is always reassuring.
Bennelong Australian Equities Fund
When you’re looking at Australian shares, the Bennelong Australian Equities Fund is definitely one to put on your radar. They’re all about finding quality companies, the kind that have a solid competitive edge and a good chance of growing over the long haul. It’s not just about picking a bunch of stocks; they do a lot of detailed research to try and get you steady returns while also managing the usual ups and downs of the market.
Their approach focuses on quality over quantity, aiming for companies with strong balance sheets and long-term growth potential. They actively manage the portfolio, shifting things around as opportunities pop up or the market changes.
Here’s a look at how it’s performed:
| Period | Return |
|---|---|
| 1 Year | 15.34% |
| 3 Years | 11.27% |
| 5 Years | 13.62% |
If you’d put $100,000 in this fund, based on those past returns, you’d have seen it grow to:
- $115,340 after 1 year.
- $137,533 after 3 years.
- $189,817 after 5 years.
Of course, like any investment, there are risks involved. Things like market movements, specific industry issues, individual company problems, and changes in regulations can all have an impact. It’s a good idea to think about your own financial situation and how much risk you’re comfortable with before jumping in.
The fund is managed with a strong emphasis on research and active management, aiming to provide investors with consistent returns and a diversified exposure to the Australian equities market. This strategy is designed to offer stability, even when the market gets a bit choppy.
Wrapping It Up
So, we’ve looked at some of the top managed funds available in Australia for 2025. Remember, picking the right one really comes down to what you’re trying to achieve with your money and how much risk you’re comfortable with. It’s not a one-size-fits-all situation, that’s for sure. Always do your homework, check out the fund’s details, and maybe have a chat with a financial advisor if you’re feeling a bit lost. Investing is a marathon, not a sprint, and making informed choices now can make a big difference down the track. Good luck out there!
Frequently Asked Questions
How do I choose the right fund for my money in 2025?
To pick the best fund, first think about what you want to achieve with your money, how much risk you’re okay with, and how long you plan to invest. Then, look into how well each fund has done in the past, what fees they charge, and what their investment plan is. It’s also a good idea to chat with a financial expert to help you narrow down your options. You want a fund that spreads your money around different things, fits your comfort level with risk, and aims for returns that make sense for you.
What are the typical costs associated with managed funds in Australia?
Managed funds in Australia usually have management fees, which are a percentage of your investment each year, and sometimes performance fees if the fund does really well. There can also be fees for buying or selling units. These costs can vary, so it’s important to check the fund’s official document, called the PDS, to see the full list of charges before you invest.
How have Australian managed funds performed recently, up to 2025?
Australian managed funds have had a mixed bag of results. They’ve generally done well when the market is growing, but have seen ups and downs when the economy is shaky. In 2025, many funds are focusing on steady growth to bounce back from recent market bumps. While some stock funds have shown good returns, short-term performance can still be a bit unpredictable across different types of investments.
What’s the main difference between managed funds and ETFs in 2025?
Think of managed funds as being actively managed by a team of pros who make decisions to try and grow your money. ETFs, on the other hand, usually just follow a specific market index, like a recipe. Because managed funds have experts making choices, they often come with higher fees than ETFs, which are generally a cheaper, more hands-off way to invest.
Are managed funds in Australia overseen by any authorities?
Yes, absolutely. Managed funds in Australia are regulated by the Australian Securities and Investments Commission (ASIC). ASIC makes sure that fund managers are honest and act in the best interests of investors. They have rules that fund managers must follow, and they require clear information about the fund, which helps protect you from misleading information.
How is my investment in a managed fund taxed in Australia for 2025?
When you invest in a managed fund, you might have to pay tax on any profits you make (capital gains tax) and on any income the fund distributes to you. This income is usually taxed at your personal income rate. If the fund holds Australian shares, you might also get franking credits, which can help reduce the amount of tax you owe. Remember to include these details in your yearly tax return.
