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.
1. Glenmore Australian Equities Fund
When you’re looking at Australian shares for your portfolio in 2025, the Glenmore Australian Equities Fund is definitely worth a look. These guys focus on finding Australian companies that are listed on the stock exchange and seem to have a good shot at growing their earnings. Their main aim is to try and beat the S&P/ASX All Ordinaries Accumulation Index, which is a pretty common benchmark here.
They put a lot of effort into researching companies, looking for those with solid business models and management teams that seem to know what they’re doing. The idea is to build a portfolio that’s not just about chasing returns, but also about managing the risks that come with investing in shares. It’s about finding that balance.
Here’s a rough idea of how it’s performed over a few periods, based on data from late 2024:
| Time Period | Annualised Return |
|---|---|
| 1-Year | 20.85% |
| 3-Year | 10.06% |
| 5-Year | 16.04% |
So, if you’d put $100,000 in five years ago, hypothetically, it could have grown to around $219,391 by the end of 2024. Just remember, this doesn’t include fees, taxes, or the market’s natural ups and downs, which can really change the final number you see. Investing in shares always comes with risks, like the whole market taking a tumble or specific companies hitting a rough patch. It’s always a good idea to check out the fund’s key statistics, like the Sharpe ratio, to get a better picture of its performance relative to risk [f42d].
It’s important to think about your own comfort level with risk and what you’re trying to achieve with your money before you invest. Understanding the potential downsides helps set realistic expectations for any investment.
Glenmore operates under the ASIC regulatory framework, meaning they have to be pretty open about their strategy, fees, and any risks involved. They provide detailed information, which is meant to give investors a decent level of protection and clarity.
2. 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. 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.
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.
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.
The fund’s 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.
3. Forager Australian Value Fund
Alright, let’s chat about the Forager Australian Value Fund. This one’s a bit like a treasure hunt for investors, focusing on finding Australian companies that are trading for less than they’re actually worth. Think of it as smart bargain hunting for stocks. They really dig into the nitty-gritty of individual businesses, rather than just looking at the big market picture.
Their main aim is to find companies that are undervalued but have solid potential to grow. They’re trying to beat the S&P/ASX 100 Index, and they’ve had a pretty good run doing it, even when the market’s been a bit wobbly.
Here’s a rough idea of how a $100,000 investment might have panned out:
| Time Period | Hypothetical Value (End) |
|---|---|
| 1 Year | $115,500 |
| 3 Years | $137,200 |
| 5 Years | $179,671 |
This fund is pretty concentrated, meaning they hold fewer stocks. This allows them to really focus on the ones they believe will do best. While this can lead to some great returns, it does mean there’s a bit more risk involved compared to funds that spread their money across hundreds of companies. So, if you’re comfortable with a bit more risk and are chasing strong growth from a select group of Australian businesses, this fund could be one to check out. They stick to the rules, so you know they’re being upfront about things.
The strategy here is all about spotting companies with strong foundations and business models that are set up for growth. By not investing in the biggest 20 companies on the ASX, they reckon they can find value in places that aren’t getting as much attention, which can help balance out the whole portfolio.
4. Vanguard Australian Shares ETF
When you’re looking to get a solid chunk of the Australian market without picking individual stocks, the Vanguard Australian Shares ETF (VAS) is a pretty popular choice. It basically tracks the S&P/ASX 300 Index, which means it holds shares in about 300 of the biggest companies listed on the ASX. Think of it as a way to get a broad slice of the Australian economy in one go.
It’s known for being pretty low-cost, which is always a good thing when you’re investing. The management fee is quite small, so more of your money stays invested and working for you. This ETF is a good option if you want to keep your investments focused on Australia but spread the risk across many companies.
Here’s a quick look at what it offers:
- Broad Australian Market Exposure: Covers around 300 ASX-listed companies.
- Low Management Costs: A key feature for long-term investing.
- Diversification: Reduces the risk compared to picking just a few stocks.
- Regular Income Potential: Often pays out dividends from the companies it holds.
For many investors, VAS is a go-to for their Australian equity allocation. It’s straightforward, cost-effective, and gives you exposure to the big players on the local stock exchange. It’s not about trying to beat the market; it’s about owning a piece of it.
It’s a solid foundation for a portfolio, especially if you’re aiming for steady, long-term growth within Australia.
5. SPDR S&P 500 ETF
Alright, let’s talk about the SPDR S&P 500 ETF, or SPY as you’ll often see it. This one’s a bit of a legend in the ETF world, being the first exchange-traded fund ever listed in the US. For us Aussies, it means we can get a slice of the big American companies without all the hassle of buying them directly.
Basically, SPY tracks the S&P 500 Index, which is a list of the 500 largest companies listed on US stock exchanges. Think Apple, Microsoft, Amazon – the big players. It’s a pretty straightforward way to get exposure to the US market.
Here’s a quick look at some of its stats:
| Metric | Value |
|---|---|
| Ticker | SPY |
| Benchmark | S&P 500 Index |
| Management Fee | 0.09% |
| Asset Class | Equity |
| AUM (AUD) | 909.39B |
| YTD Return | 4.27% |
Why would you consider it?
- Diversification: You’re not putting all your eggs in one basket. Spreading your investment across 500 companies reduces the risk compared to picking just a few stocks.
- Access to US Market: It’s a simple way to tap into the performance of the US economy, which is a major global player.
- Liquidity: Being the first and one of the largest ETFs, it’s generally easy to buy and sell.
While SPY is a popular choice, it’s worth noting that other ETFs also track the S&P 500, sometimes with slightly different fees. It’s always a good idea to compare these options before deciding.
It’s a solid option if you’re looking to add some US market exposure to your Australian portfolio. Just remember to do your own homework and see how it fits with your overall investment plan.
6. Vanguard MSCI Intl ETF
Alright, let’s talk about the Vanguard MSCI Intl ETF, or VGS as you’ll often see it. This one’s a pretty popular choice for Aussies looking to spread their investments beyond our own shores. It gives you a slice of a whole heap of big companies from developed countries, but skips out on Australia itself. Think of it as a way to get your hands on global shares without having to pick individual stocks yourself.
It’s all about diversification, which is a fancy word for not putting all your eggs in one basket. By investing in VGS, you’re essentially buying into hundreds, sometimes thousands, of companies across different countries and industries. This can help smooth out the ride if one particular market or sector hits a rough patch.
Here’s a quick look at what you’re generally getting with VGS:
- Broad Developed Market Exposure: Access to large and mid-sized companies in countries like the US, Japan, the UK, and many others.
- Low Management Fees: Vanguard is known for keeping costs down, and VGS is no exception. This means more of your money stays invested and working for you.
- Passive Management: It tracks a specific index, the MSCI World ex-Australia Index, so it’s not trying to beat the market, just follow it.
This ETF is a solid option for investors who want a straightforward way to add international shares to their portfolio. It’s a set-and-forget kind of investment for many, especially when paired with other ETFs that cover the Australian market. It’s a good way to get global diversification without a lot of fuss.
When you’re looking at your portfolio for 2025, VGS is definitely worth considering if you’re aiming for that international exposure. It’s a simple, cost-effective way to tap into global growth.
7. Vanguard Diversified Growth ETF
Alright, let’s chat about the Vanguard Diversified Growth ETF, or VDGR as you might see it ticker-ed. This one’s aimed at folks who are looking for their money to grow over the long haul, but they’re okay with a bit of a bumpy ride along the way. It’s basically a mix of different investments, leaning more towards shares than bonds.
Think of it like this:
- More Shares, Less Bonds: VDGR generally holds a bigger chunk of shares (equities) compared to fixed interest (bonds). This is where the potential for higher growth comes from, but it also means it can swing around more.
- Diversified Approach: The ‘Diversified’ part is key. It’s not just putting all your eggs in one basket. It spreads your investment across various types of assets and even different regions, which helps spread out the risk.
- Long-Term Focus: This ETF isn’t really for short-term gains. It’s designed for investors who can keep their money in for a good number of years, letting the growth compound.
This ETF is a solid choice if you’re aiming for capital appreciation and can handle some market ups and downs.
Here’s a quick look at how it stacks up:
| Feature | Detail |
|---|---|
| Benchmark | Growth Composite Index |
| Management Fee | 0.27% |
| Asset Class | Diversified |
| Approx. AUM (AUD) | $11.79 billion (as of early 2025) |
| YTD Return | -1.30% (as of early 2025) |
When you’re looking at growth-focused investments like VDGR, it’s important to remember that higher potential returns usually come with higher risk. It’s all about finding that balance that suits your personal comfort level with market fluctuations and your own financial goals.
8. Vanguard Diversified High Growth ETF
Alright, let’s talk about the Vanguard Diversified High Growth ETF, or VDHG as you’ll often see it. This one’s for those of you who are really aiming for the stars with your investments and are comfortable with a bit of a bumpy ride along the way. It’s designed to chase after significant capital growth over the long haul.
Think of VDHG as a ready-made portfolio packed with a bunch of different investments. It leans pretty heavily towards shares, both here in Australia and overseas, because historically, shares have offered the best chance for big returns. But it doesn’t put all its eggs in one basket; it also includes some fixed interest stuff to try and smooth things out a bit. It’s basically a mix that’s geared towards growth, with a bit less focus on income right now.
Here’s a rough idea of what you might find inside:
- A substantial chunk in Australian shares.
- A good portion in international shares from developed countries.
- A smaller slice in emerging market shares.
- A bit of exposure to Australian and international fixed interest.
This ETF is managed by Vanguard, and they’ve put together a mix that’s pretty hands-off for you. You buy into VDHG, and you’re instantly invested across all these different areas. It’s a way to get broad diversification without having to pick and choose individual shares or bonds yourself.
When you look at VDHG, you’re looking at an ETF that’s built for investors who have a long time horizon. It’s not really for someone who needs their money in a couple of years. The higher allocation to growth assets means there will be times when its value drops, sometimes quite a bit. But the idea is that over many years, this aggressive approach should lead to better overall growth compared to more conservative options.
It’s a popular choice for people who want a high-growth strategy but prefer the simplicity and lower costs that come with an ETF structure. Just remember, with great growth potential comes greater risk, so make sure it fits with your personal comfort level for market ups and downs.
9. Vanguard Diversified Balanced ETF
Alright, let’s chat about the Vanguard Diversified Balanced ETF, or VDBA as you’ll often see it. This one’s a bit of a middle-ground option, aiming for a mix of growth and stability. It’s designed for folks who want their investments to grow over time but aren’t keen on riding the super-wild rollercoaster of the market. Think of it as a steady hand.
What’s inside this ETF is a blend of shares and bonds. It’s not all in on one thing, which is generally a good idea. The idea is that when shares are having a rough time, the bonds might hold up better, and vice versa. This helps smooth things out. It’s a pretty popular choice for people building a long-term portfolio, especially if they’re not looking to take on too much risk. Global equity markets have seen some ups and downs, but a balanced approach like this can help weather those storms.
Here’s a quick look at what you’re generally getting with VDBA:
- Equities: A good chunk of this ETF is invested in shares, both here in Australia and overseas. This is where the potential for growth comes from.
- Fixed Income: You’ll also find bonds in the mix. These are generally considered less risky than shares and can provide a bit of a buffer.
- Diversification: The whole point is to spread your money across different types of assets and regions, so you’re not putting all your eggs in one basket.
It’s worth noting that while it’s ‘balanced’, it still carries some risk. The exact mix can change over time as Vanguard rebalances the fund, but the general strategy stays the same. It’s a solid option if you’re after moderate growth and don’t want to be constantly checking your portfolio.
This ETF aims to provide a mix of growth and income, with a focus on managing risk. It’s a good choice for investors who want a diversified portfolio without the high volatility often associated with pure equity funds. The blend of assets is designed to perform reasonably well across different market conditions.
10. VanEck MSCI International Quality ETF and more
When you’re looking beyond Australian shores, the VanEck MSCI International Quality ETF (QUAL) is definitely worth a look. It focuses on companies that have strong financial health and stable earnings. This approach aims to pick out businesses that tend to do better, even when the market gets a bit bumpy. It’s a smart beta ETF, which means it uses a specific set of rules to select its investments, rather than just tracking a broad market index. This can be a good way to get targeted exposure to international markets.
VanEck offers a few different smart beta ETFs, each with its own strategy. They have options for value investing, which looks for stocks that seem undervalued, and growth investing, which targets companies expected to expand quickly. These factor-based ETFs are becoming more popular because they combine the low costs of passive investing with a more active selection process.
Here’s a quick look at how QUAL stacks up:
- Benchmark: MSCI World ex Australia Quality Index
- Management Fee: Typically low, check current details
- Focus: Companies with strong financial metrics and stable earnings
Investing in ETFs like QUAL can be a straightforward way to diversify your portfolio internationally. They offer a way to tap into global markets without needing to pick individual stocks yourself. It’s a good option if you’re looking for a more refined approach to international investing.
Beyond VanEck, there are other ETFs that offer broad international exposure. The Vanguard MSCI Intl ETF (VGS), for example, gives you access to large and mid-sized companies across developed markets, excluding Australia. It’s a popular choice for building a diversified international holding. The Australian equity market has seen some solid gains recently, especially in mid- and small-cap stocks, so keeping an eye on Australian shares is also a good idea.
Wrapping Up Your Investment Journey
So, we’ve had a look at some of the top managed funds available in Australia for 2025. 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 definitely not a one-size-fits-all situation. 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?
The tax rules for managed funds in Australia can be a bit complicated and depend on how the fund makes money and how you receive your distributions. Generally, you’ll pay tax on any income or capital gains the fund distributes to you. It’s best to check the fund’s PDS or speak to a tax advisor to understand the specific tax implications for your situation.
