Types of Superannuation Funds

Personal Superannuation: A personal fund can come in many different types such as a Retail fund with a specific fund manager such as AXA and AMP and you will find that the investments within these funds are all the companies own. You can also have a Master Trust or Wrap account which is effectively an administration service offered by most of the major companies and allows access to hundreds of different investment funds managed by many fund managers and often direct shares as well. Flexible insurance arrangements are also provided with these products.

Employer Superannuation: These are superannuation funds set up by employers on behalf of employees to accept the employers Superannuation Guarantee Charge (SGC) contributions. These can be either retail or master funds and are still common even though we now have Choice of Super. You normally have a flexible range of insurance available though normally you cannot access direct shares as an investment option.

Self-Managed Superannuation: For those who like to be hands on with their retirement savings you can set up your own superannuation fund and become your own trustee. These funds are suited to larger amounts and usually if you prefer to invest into direct property but can also invest in managed funds, direct shares and other investment types. There can be administrative burdens that are not suited to some individuals that you don’t get with other funds.

Industry/Government Funds: These are basically “one size fits all” funds and employment is usually a pre-requisite of membership. Costs can be lower however this can be a trade off from investment advice, insurance flexibility and access to advice.