I am a relatively young student with a fairly low superannuation balance. I am not expecting any substantial new contributions to be made to my super any time soon due to my income being largely derived from non-standard employment. That said, I would like my existing balance to compound as effectively as possible.
One of the things I have found frustrating is that on relatively low superannuation balances, super fund fees end up being a large percentage of the capital invested. To give an example, assume fees of $100/yr on a $1000 balance. This is a 10% fee. Assuming historical market returns of ~10%, all gains are eaten up in fees. This typically happens during a person's youngest years where the money would otherwise have the longest amount of time to compound were it invested somewhere with lower fees.
Outside of superannuation, one can buy Vanguard index funds with fees as low as 0.15%/yr on the Australia Securities Exchange. On a $1000 balance this is $1.50/yr in fees instead of $100/yr. Ideally if I had total control over my money I would withdraw it all from superannuation and invest it in such index funds at $1.50/yr myself. Of course superannuation is not like regular money -- I cannot simply withdraw it, certainly not at my age. So, I am looking for a superfund that get's as close as possible to simply putting my money in index funds. Or more to the point, one that has low fees which are commensurate with how little added value there is to them doing this instead of me doing it myself.
Basically I'm after the best low-cost no frills provider whose returns will essentially match the market based on the fact that all they do is put the money in index funds. I'm not looking for actively managed funds with exotic investment strategies and I don't need colorful brochures in the mail every quarter.
Given that I can't simply withdraw my super and manage it myself, what are some good providers that meet my preferences?