Superannuation
5. Superannuation Fund Type
Authors: Staff Legal Eagle
Firm / Chambers:
Last updated: 27 Aug 2015
- There are many different types of common super funds.
- MySuper funds are the newest type of accumulation super fund that is becoming popular due to its lower fees and easy management.
- Retail funds are an accumulation fund managed by investment companies or banks and offer members many types of investment options. Since it is a company owned fund the company takes a share of profit.
- Industry funds can be either an accumulation fund or a defined benefit fund. Usually these funds are industry specific and are not for profit. This enables members to receive 100% share of profits. New members cannot choose a defined benefit fund design.
- Public sector funds can be an accumulation fund or a defined benefit fund. These funds are specifically for federal and state government employees and offer their members low fees and 100% share of profits. New members cannot choose a defined benefit fund design.
- Corporate funds can be an accumulation fund or a defined benefit fund operated by an employer, retail fund or an industry super fund. New members cannot choose a defined benefit fund design.
- A Self-Managed Super Fund (SMSF) is a type of super fund that enables an individual to manage their own super and its investments. Most SMSFs are set up with the intention of expediting growth through purchase of property. You should always get financial and legal advice prior to setting up an SMSF as setting up and operating a SMSF requires a lot of skill, resources and compliance under many laws. You can use our free Find a Lawyer directory to contact a lawyer near you.
View more Information on Tax & Superannuation