7 high-growth stocks for a comfortable retirement

The growth in superannuation and ethical investing are two trends investors would do well to consider.

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're looking to plan for a comfortable retirement you're not the only one, in fact as at June 2013 the total value of Australia's superannuation assets was estimated at $1.62 trillion, which is more than the entire $1.35 trillion market cap of the Australian stock exchange at the same time.

What's more is that Australia's pool of superannuation assets has been growing much faster than the economy and should continue to do so, meaning much of this vast amount of money will flow back into ASX shares and companies that manage those shares and other superannuation products on behalf of investors.

Businesses to profit include the likes of Perpetual Limited (ASX: PPT) with its aligned interests in investment management, financial planning and advice services. It also offers admin, custody and trustee services for self-managed super investors. For the quarter ending March 31, 2014, the group saw marginally positive inflows to funds under management of $31 billion. It will be expecting better days ahead having reformed its sales and distribution strategy as part of a transformation program that also involved heavy cost-cutting, it's due for completion come 2015, when the full flow on effects to the bottom-line should be realised.

Others with similar exposure include BT Investment Management Limited (ASX: BTT) and IOOF Holdings Limited (ASX: IFL). Challenger Ltd (ASX: CGF) is another high-growth business with a focus on annuity style investing that is trading on an attractive looking price-earnings ratio around 11.

Investors looking for exposure to the growth in super and global equity markets could consider internationally focused fund managers like Platinum Asset Management Limited (ASX: PTM) or Magellan Financial Group Ltd (ASX: MFG).

One other strong trend to watch out for is the growth in ethical investing, where certain investments for example in tobacco, weaponry, pornography or environmentally harmful businesses are not allowed. Australian Ethical Investment Limited (ASX: AEF) shares are up 46% in the last six months with net profit up 150% for the half-year to December 2013. As more money flows into its superannuation and other offerings it's one to watch.

Foolish takeaway

Some of these diversified financials suffered a small sell-off recently as large technology and other blue-chip stocks in the U.S. dipped in valuations and shook listed Australian money managers at the same time. Australian Ethical could be the next high-growth cab off the rank having the twin tailwinds of the growth in super and ethical investing supporting it into the future.

Motley Fool contributor Tom Richardson owns shares in Magellan Financial. You can find him on twitter @tommyr345

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »