Thursday 17 May 2012
Articles
Fund Comparison
Option 1: Industry Funds
 
Industry Superfunds are Funds operated by parties to industrial awards (usually employer associations and/or unions) to provide superannuation to people who work in a common industry or group of associated industries. For example HESTA is an Industry Fund set up to cater for people in health and community services, although membership is open to employees in any industry.
Examples of Industry Funds include: CBUS and ARF

Who manages your Super in an Industry Fund:

Professional Fund Managers
Do Industry Funds pay commissions to advisors: No
 
 
Option 2: Retail Funds
Retail funds are open to anyone who wishes to join and have a variety of investment options. Retail Funds are usually accessed through financial advisers and pay commissions. Retail Funds usually construct a portfolio aimed at choosing 'winning' stocks in an attempt to outperform the market.
Examples of Retail Funds include:

Colonial, BT Perpetual, AMP

Who manages your Super in a Retail Fund:

Professional Fund Managers
Do Retail Funds pay commissions to advisors: Yes
 
 
Option 3: Index Funds
Index Funds are a type of retail fund, in that they are open to anyone who wishes to join them. Index Funds don't try to chose 'winning' stocks in an attempt to outperform the market. Instead, they construct a portfolio which includes all or a representative sample of the securities within a market index. So, if the market goes up or down, the value of the return of an index fund typically goes up or down in the same proportion.
Examples of Index Funds include: Virgin and Vanguard

Who manages your Super in an Index Fund:

Professional Fund Managers
Do Index Funds pay commissions to advisors: No
 
 
Option 4: Self Managed Superfunds (SMSF)
Self Managed Superfunds (SMSF) or DIY Funds cater for individuals who are prepared to accept the responsibility of running their own Superfund including making all the Investment decisions for the Fund. The administration for these Funds is usually done by an accountant such as ESUPERFUND.
Who manages your Super in a SMSF: You
Do SMSF pay commissions to advisors: No
 
 
Option 5: Other - Corporate Funds & Public Funds
Corporate & Public Funds are often established for employees of a particular company or the Public Sector and are tailored to meet the requirements of the Company or Sector and its employees. Choosing these types of Funds is typically only available to workers of the specific Company or the Public Sector.

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