Types of funds

Industry funds

Most industry funds were established in the mid to late 1980s by unions and employer groups to provide superannuation for ‘blue collar’ employees and run only to profit members. Industry funds drew their membership from employees of a particular industry, like transport. Now the majority of industry funds are 'public offer' funds, which means they are open to the general public.

Retail or public offer funds

These include commercially promoted funds and master trusts, usually provided through banks, fund managers and life offices. As they are public offer, they must have an approved trustee and may be required to issue an offer document (such as a Product Disclosure Statement) to prospective members.

Master trusts

These are funds that manage super for a large number of unconnected individuals and/or companies under a common trust deed. Master trusts are offered by life companies, banks and superannuation administrators.

Corporate (or employer-sponsored) funds

This type of fund is created by a particular employer for its own employees.

Self-managed super funds (SMSFs)

Also known as “Do-it-yourself” (DIY) funds, SMSFs are funds with less than five members and are typically set up for people who want to have greater control over their superannuation. All the members must be trustees of the fund and ensure that the fund complies with all the relevant legislation.

Retirement Savings Accounts (RSAs)

RSAs are provided by banks and credit unions. They operate like a bank account and, because they must be capital-guaranteed, may produce lower long-term returns than other superannuation arrangements.