It said the inflation continued to drive investment markets with most Australian and global equities delivering modest returns while and energy and commodities performed well over July.

“We expect returns will remain bumpy over the short term, despite the Reserve Bank taking a wait and see approach in both July and August following indications that the tightening cycle is beginning to have a clearer impact on spending and consumption,” SuperRatings said.

The median growth option fund rose by an estimated 1.8 per cemt, while the median capital stable option delivered a small positive result, with an increase of 0.8 per cent, the company said.

“Pension returns also increased in July, with the median balanced pension option up an estimated 1.7 per cent. The median growth option is estimated to rise 2 per cent for the month while the more defensive median capital stable pension option is estimated to deliver a 0.9 per cent return.

Executive director Kirby Rappell said funds had a strong finish to the 2023 financial yeat with the median balanced fund returning 9.1 per cent over the year to June.

He said it was pleasing to see funds maintaining that momentum into the first month of 2024.