In Australia, there are four main types of superannuation funds, each type of fund has its own unique features and investment options, and you can choose the one that best meets your needs and goals.
These are:
Retail funds: These are managed by financial institutions such as banks, and are open to the general public. They often have a range of investment options and offer advice and other services.
Industry funds: These are non-profit funds that are set up for workers in a particular industry, such as hospitality or construction. They usually have lower fees than retail funds, as they don’t have to pay commissions to financial advisers.
Corporate funds: These are set up by employers for their employees. They may have a limited range of investment options, but they can be cost-effective for employees as they often have lower fees.
Self-managed super funds (SMSFs): These are funds that are managed by individuals or small groups of up to four members. They allow for greater control over investment decisions, but require a lot of time and effort to manage, and can be expensive to set up and maintain.
It’s important to choose the right type of fund for your individual needs and circumstances. It’s always a good idea to seek advice from a financial adviser before making any decisions about your superannuation.