Some people like to manage their super investments for themselves. Others, prefer to leave decisions to the professionals.
If you want more control, you may be thinking about:
- A Self-Managed Super Fund (SMSF), or
- A Direct investment option within a super fund.
Both options give you more choice, but they work very differently.
Direct investment options
A Direct Investment option, like AustralianSuper’s Member Direct, lets you choose some of your own investments, such as shares and exchange-traded funds (ETFs), while staying in an industry super fund.
With this option:
- AustralianSuper remains the trustee,
- Legal and admin work is handled for you, and
- You choose how much you want to manage yourself.
This option offers more control without full responsibility.
Things to think about
- You need to make your own investment decisions,
- You need to spend time managing your investments, and
- Extra fees may apply for buying and selling investments.
What’s an SMSF
An SMSF is a super fund that puts control in your hands, and you run yourself.
With an SMSF:
- You are responsible for all decisions,
- You must follow super and tax laws, and
- You’re legally responsible for managing your super correctly.
SMSFs can be complex and may suit people with larger balances or specific needs and come with their own set of costs and challenges.
Things to think about
- More time, cost, and effort,
- Legal and tax responsibilities sit with you,
- Ongoing running costs,
- Mistakes can lead to penalties, and
- Professional advice is strongly recommended.
Choosing the right option
| A direct investment option might suit you if: | An SMSF might suit you if: |
|---|---|
| You want more control over your super, but not full responsibility | You want full control over all investment decisions |
| You like choosing investments, but don’t want to run a super fund | You’re comfortable being legally responsible for your super |
| You want your super fund to handle the rules, reporting and paperwork | You have time to manage paperwork, reporting and compliance |
| You’re happy managing part of your super, not all of it | You’re willing to pay ongoing costs to run the fund |
| You want fewer admin tasks and less legal risk | You plan to get professional advice to help manage risks |
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Disclaimers
- Personal financial product advice is provided under the Australian Financial Services Licence held by a third party and not by AustralianSuper Pty Ltd. Fees may apply.