NewsUnderstanding Superannuation in Australia

Why many investors choose industry super funds over SMSF—and why many don’t.

There are as many situations as there are individual investors. SMSFs, or “Self Managed Super Funds,” have become a popular choice among individual investors and small groups of investors, while industry super funds have also become a popular choice for individuals. While there are plenty of other choices such as retail funds, this article will explain the difference between SMSFs and Industry Super Funds

So, which one is better? It depends upon your situation. While we always recommend seeing a superannuation professional for advice, we would like to offer some general guidelines to give you a better idea of what to expect when you have your first consult with a financial planner about superannuation.


Changes in superannuation regulations have allowed a lot of Australians to take the opportunity and exert control over their super funds. An SMSF allows for a lot more individual control than an industry super fund does. While the industry super fund is basically a passive investment that requires no effort on your part, an SMSF will require you to be a trustee of your own fund. That makes compliance and risk your responsibility.


An SMSF allows far more flexibility as it is self-managed. Meanwhile, there is no flexibility in an industry super fund. The SMSF is more flexible but requires that you work far more closely with a professional financial planner and other members of your investment team.

Investment Options

The SMSF contains unlimited options, but requires more work on your part and carries more risk. The industry super fund will allow you to select from a limited base of options based on your risk profile.

Choosing a Professional

The SMSF provides more flexibility, but it takes more work and carries more risk. It can have a larger upside, but also a larger downside. Industry super funds tend to be more consistent and require less effort.

Ultimately, you should consult a Perth financial planner for advice on your situation. Call Approved Financial Planners today: 08 6462 0888.