Essential Super does not charge a fee to change your investment fund
You can switch between the investment options in your Essential Super account at no cost. There is no transaction fee, no switching fee, and no administration charge when you move money from one fund to another within your account.
What you do need to know is that switching happens on the next business day after your request is processed, and the value of your units in the old fund is locked in at that day's closing price. If the market moves between when you submit your switch and when it takes effect, your new fund value reflects that movement — you do not pay extra for it, but you also do not avoid it.
Key Takeaways
- Essential Super charges zero dollars to switch between investment funds within your account.
- Your switch takes effect the next business day, using the unit price at that day's close.
- You can switch as often as you want, but frequent switching does not trigger additional fees.
- Some funds may have different ongoing management fees, so your total annual cost may change when you move to a different fund.
How the switch process works and when it takes effect
When you request a fund switch through your Essential Super account, the request is processed during the next business day. Your units in the current fund are sold at that day's closing unit price, and the money is when ready reinvested in your new fund at that same day's closing price. You do not pay a fee for this transaction, and there is no waiting period between selling and buying.
If you submit your switch request after business hours or on a weekend, it will be processed on the next business day. The timing matters only if the market is moving sharply — a switch requested on Friday evening will use Friday's closing prices, not Monday's. This is standard across all superannuation funds and is not a cost to you, but it is worth understanding if you are trying to time a switch around market movements.
Why your ongoing fund fees might change when you switch
Although the switch itself is free, different investment funds within Essential Super may have different ongoing management fees. If you move from a lower-cost fund to a higher-cost one, your annual fees will increase. If you move to a lower-cost option, your fees will decrease. These ongoing fees are charged regardless of whether you switch — they are part of how the fund is managed — but they do affect your total cost of membership.
Essential Super publishes the fee for each fund in its Product Disclosure Statement and on its website. Before you switch, check what the annual fee is for your current fund and the fund you are moving to. The difference might be small (sometimes less than 0.1 per cent per year) or more noticeable, depending on which funds you are comparing. Over time, even small fee differences add up because they compound year after year.
When switching makes sense and when it does not
Switching is useful when your investment goals change, when you want to reduce risk as you get closer to retirement, or when you want to move to a fund that better matches your values or risk tolerance. You might switch from a growth fund to a balanced fund, or from a conventional fund to an ethical or socially responsible option. None of these switches cost you money.
Switching does not make sense if you are trying to time the market — moving money in and out based on whether you think the market will go up or down. Markets are unpredictable, and the cost of being wrong (in lost growth) usually outweighs any benefit from timing. Because Essential Super does not charge switching fees, the barrier to frequent switching is low, but that does not mean frequent switching is a good strategy.
How to request a fund switch with Essential Super
You can switch funds through your Essential Super online account, by phone, or by completing a paper form. The online method is fastest — you log in, find the switch option, select your current fund and your new fund, and confirm. The switch is submitted when ready and processed the next business day.
If you prefer to call, Essential Super's member services team can process your switch over the phone. You will need your member number and to confirm your identity. If you use a paper form, you read it from the Essential Super website, fill it out, sign it, and mail it in. Paper switches take longer because they have to be received, scanned, and entered into the system, so online or phone is usually faster.
What happens to your money during the switch
Your money does not sit in cash while the switch happens. When your units in the old fund are sold at the closing price, the proceeds are when ready reinvested in the new fund at that same closing price. There is no gap, no holding period, and no risk that your money will be in cash earning nothing. This is why the switch is free — it is a straightforward transfer of value from one fund to another.
If you are switching because you are worried about market conditions, understand that moving to cash or a defensive fund still means your money is invested. It is just invested differently. There is no option to pause your superannuation or hold it outside a fund while you decide what to do next.
Switching multiple times and whether that affects your costs
You can switch funds as many times as you want, and each switch is free. There is no limit on the number of switches per year, no penalty for switching frequently, and no fee that increases if you switch often. From a cost perspective, switching ten times costs the same as switching once — nothing.
That said, if you switch between funds with different ongoing fees, your annual cost will change each time. If you switch from a 0.5 per cent fee fund to a 0.8 per cent fee fund and back again, you will pay different amounts in each period, but you will not pay a switching fee on top of that. The only cost is the difference in ongoing management fees, which you would pay anyway whether you switched or not.
Frequently Asked Questions
Do I lose money when I switch funds?
You do not lose money to a switching fee. Your units are sold and reinvested at the same day's closing price, so there is no transaction cost. However, if the market moves between when you request the switch and when it is processed, your new fund value will reflect that movement — you might have slightly more or slightly less, depending on market direction, but that is market movement, not a fee.
Can I switch back to my old fund if I change my mind?
Yes. Switching back is also free and takes effect the next business day. There is no penalty or fee for changing your mind. Keep in mind that if the market has moved between your first switch and your second switch, the value of your units will have changed, but again, that is market movement, not a cost.
Will switching affect my insurance cover?
No. Switching investment funds does not change your insurance cover, your insurance premiums, or your may be able to access for insurance. Your insurance is separate from your investment choice and continues regardless of which fund your money is in.
How long does a fund switch take?
A switch takes effect the next business day after you submit your request. If you switch online or by phone during business hours on a Monday, it processes on Tuesday. If you submit on Friday after hours or over the weekend, it processes on Monday. Paper forms take longer because they must be received and manually entered.
What if I want to switch only part of my balance?
You can switch a partial amount. When you request a switch, you specify how much money to move from your current fund to your new fund. The rest stays in your old fund. This is useful if you want to gradually move to a different fund or if you want to split your balance across multiple funds.