As the New Financial Year Approaches, One Thing is Clear: SMSFs Are Leaving Industry and Retail Super Funds in the Dust

As we gear up for a new financial year, it's crucial to take a close look at our superannuation options. And guess what? Self-Managed Super Funds (SMSFs) are emerging as clear winners, outshining industry and retail super funds on almost every metric.

A comprehensive study by the University of Adelaide has highlighted just how well SMSFs are performing. The research delved into the performance of 394,000 SMSFs, covering 67% of private super funds. The findings are compelling and paint a clear picture of SMSF superiority.

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Industry Super Funds: Struggling to Keep Up

Industry super funds have had a challenging time recently, grappling with significant blows to their investment returns. According to the University of Adelaide's research, these funds are still trying to recover from the latest setbacks.

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The Study: Revealing the Numbers

The study's analysis showed that 38% of the SMSFs reviewed achieved positive returns. In stark contrast, less than 5% of APRA-regulated super funds managed to do the same. This stark difference highlights the consistent outperformance of SMSFs.

In the 2021-22 financial year, SMSFs didn't just outperform APRA-regulated funds; they significantly outshone them with a 4.1% higher investment return. This performance is a testament to the robust investment strategies employed by SMSF trustees.

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The ASX Impact and SMSF Resilience

During the study period, the ASX experienced a substantial 10% decline, which hit industry and retail super fund balances hard, causing a 5% decrease. However, SMSFs demonstrated remarkable resilience, with their balances only dipping by 1%. This ability to weather financial storms showcases the strength and stability of SMSFs.

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The Bottom Line: SMSFs for the Win

As we step into the new financial year, it's essential to recognise the impressive performance of SMSFs. They have consistently delivered higher returns and shown exceptional resilience during market downturns. If you're considering where to invest your retirement savings, SMSFs are certainly worth a closer look, and if you need help with that closer look, think Supavest. 

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