SMSF comparison
SMSF vs retail super fund: where the numbers and the control actually differ
Retail super funds — bank-owned funds, wrap platforms, adviser-led platforms — usually offer a broader investment menu than an industry fund, but stack their fees in layers. An SMSF replaces the whole stack with a single fixed admin fee. Here's the honest comparison: fees, investment choice, insurance, and the balance where an SMSF actually starts winning.
How the costs really compare
On a typical retail wrap platform you pay an administration fee (often tiered by balance), an investment fee on each holding (the indirect cost ratio of every managed fund or ETF), and frequently an adviser service fee on top. Add those up and the all-in cost commonly sits at 1.0%–1.5% per year for a moderately complex portfolio.
An SMSF replaces the admin and platform layer with a fixed annual fee in dollars. You still pay the investment fees of any managed funds or ETFs you choose to hold, but you also get the option to hold investments with no platform fee at all — direct ASX shares, term deposits, residential and commercial property, bullion.
The crossover where an SMSF beats a retail wrap platform on cost typically sits at $150,000–$250,000 combined balance, lower than the SMSF-vs-industry-fund crossover because retail platforms generally cost more.
- Retail fund: admin fee + investment fee + (often) adviser fee — typically 1.0%–1.5% all-in
- SMSF: fixed admin fee + only the investment fees you choose to incur
- Crossover on cost: around $150,000–$250,000 combined member balance
- Investment menu: SMSF is wider — direct shares, property, term deposits, bullion
- Insurance: arrange SMSF-held or retail cover BEFORE rolling out of the retail fund
- Advisers: can continue to advise an SMSF if they hold an appropriate AFSL