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What are the different types of super funds?

What are the different types of super funds?

With a number of options to choose from, here's some information about the different types of superannuation funds.

When it comes to choosing a super fund there are many different options. Broadly, these super funds can be grouped into five categories.

Understanding what makes up each of these categories can help you find the super fund that best suits you.

Retail funds

  • Typically run by banks or investment companies
  • Anyone is usually able to join
  • Offer the widest range of investment options (excluding self managed super funds/SMSFs)
  • Offer various insurance products through the fund
  • May offer access to financial advice
  • May offer ability to view your super alongside other savings accounts
  • Have employer-sponsored divisions within the fund

Industry funds

  • Some are open to anyone while others are limited to employees in specific industries
  • Different funds available to reflect different industries
  • Amount of investment options available is usually smaller than with retail funds

Corporate funds

  • Set up by an employer for its employees
  • Membership is usually restricted to current and former employees
  • May run as an industry fund or a retail fund
  • Group insurance is often negotiated by the employer with the trustee on behalf of its employees

 Public sector funds

  • Usually individually established by federal or state legislation
  • Typically only open to government employees
  • Amount of investment options available is usually smaller than with retail funds
  • May offer low fees and low-cost insurance

Self managed super funds

  • A private super fund that you manage yourself
  • Can have up to four members who are also trustees and responsible for decisions and complying with laws
  • No membership fees but costs include the cost of administration, investing, accounting and auditing
  • More control of investment choice
  • Generally only cost effective for people with a certain amount of superannuation assets

Other types of super funds

There are other types of super funds that are less common than those listed above. These include:

  • Approved deposit funds
  • Eligible rollover funds

Read more about other types of super funds on the Australian Government Australian Taxation Office website.

Things to consider: This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Investors should consult a range of resources, and if necessary, seek professional advice, before making investment decisions in regard to their objectives, financial and taxation situations and needs because these have not been taken into account. Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (CFS) is the issuer of interests in Commonwealth Essential Super ABN 56 601 925 435 (Essential Super) and is a wholly owned subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124 (Bank). This document may include financial product advice but does not consider your individual objectives, financial circumstances or needs. You should read the Product Disclosure Statement (PDS) for Essential Super before making any decision regarding this product. Download the PDS or call us on 13 40 74 for a copy. The Bank and its subsidiaries do not guarantee the performance of Essential Super and an investment in this product is subject to risk, loss of income and capital invested. An investment in Essential Super is via a superannuation trust and is therefore not an investment in, deposit with or other liability of the Bank or its subsidiaries. Where we mention ‘we’, ‘us’ or ‘our’, we mean CFS. While potential SMSF investments have been illustrated within this content they do not represent a comprehensive suite of possible investment products and services within the guidelines pursuant to the SIS Act 1993 with ATO oversight.

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Investors should consult a range of resources, and if necessary, seek professional advice, before making investment decisions in regard to their objectives, financial and taxation situations and needs because these have not been taken into account. Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (CFS) is the issuer of interests in Commonwealth Essential Super ABN 56 601 925 435 (Essential Super) and is a wholly owned subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124 (Bank). This document may include financial product advice but does not consider your individual objectives, financial circumstances or needs. You should read the Product Disclosure Statement (PDS) for Essential Super before making any decision regarding this product. Download the PDS or call us on 13 40 74 for a copy. The Bank and its subsidiaries do not guarantee the performance of Essential Super and an investment in this product is subject to risk, loss of income and capital invested. An investment in Essential Super is via a superannuation trust and is therefore not an investment in, deposit with or other liability of the Bank or its subsidiaries. Where we mention ‘we’, ‘us’ or ‘our’, we mean CFS. While potential SMSF investments have been illustrated within this content they do not represent a comprehensive suite of possible investment products and services within the guidelines pursuant to the SIS Act 1993 with ATO oversight.