I believe for most investors there are two main goals when it comes to self-managed super funds. One is to create a source of income in retirement and the other is to avoid capital losses.
This is of course easier said than done. But I feel investors can give themselves the best possible chance of success if they invest in high quality companies with significant room for growth.
Four shares which fit the bill right now in my opinion are as follows:
Premier Investments Limited (ASX: PMV)
Thanks to the international expansion of its Smiggle brand, I expect this retail group to deliver above-average earnings growth for the foreseeable future. But as well as Smiggle I think the company's popular Peter Alexander sleepwear brand has the potential to expand significantly overseas and boost earnings growth. So with its shares currently providing a trailing fully franked 3.7% dividend, this could be a great buy and hold option for SMSF investors.
Ramsay Health Care Limited (ASX: RHC)
Although at present this leading private hospital operator's shares only provide a trailing fully franked 1.8% dividend, I believe the company will increase its dividend significantly over the next decade. With demand for its services expected to grow strongly due to ageing populations and increased chronic disease burden, I believe Ramsay would be a great addition to most SMSFs.
Vocus Group Ltd (ASX: VOC)
The great thing about Vocus is that it provides investors with both income and growth. At the current share price the fast-growing telco company's shares provide investors with a trailing fully franked 3.2% dividend. I expect this has a lot of room for growth over the next few years as the company increases its home broadband market share and grows its bottom line. At just 13x estimated FY 2017 earnings, Vocus could prove to be a bargain buy.
Webjet Limited (ASX: WEB)
This online travel agent thoroughly impressed me recently when it reported an 86.9% increase in half-year net profit after tax. Strong bookings growth in both its consumer and business-to-business segments led to the stunning performance and an increase in full-year guidance. Although its shares only provide a trailing fully franked 1.4% dividend, I expect the company to grow this enormously over the next decade. For this reason it would have to be one of my favourite buy and hold investment options.
