For most people the real super decision isn’t “which SMSF?” — it’s “should I run my own fund at all, or stay in a big industry fund?” Here’s a fair, side-by-side comparison.
At a glance
| SMSF | Industry fund | |
|---|---|---|
| Who runs it | You, as trustee (ATO-regulated) | Professional trustee (APRA-regulated) |
| Investment control | Full — direct shares, property, more | Menu of diversified options |
| Cost structure | Mostly fixed $ — efficient at high balances | Percentage-based — efficient at any balance |
| Time & responsibility | High — compliance sits with you | Minimal — done for you |
| Insurance | You arrange it (often dearer) | Group cover, usually cheaper & easy |
| Compensation scheme | Not covered | Covered for theft/fraud |
Where the SMSF wins
Control and flexibility. If you want to hold direct property, business premises, or build a bespoke portfolio — and you have the balance and appetite for the responsibility — an SMSF can do things a fund can’t.
Where the industry fund wins
Cost, simplicity and protection. A low-cost industry fund gives you professional management, cheap group insurance, the government compensation scheme, and no compliance burden — at a fee that’s competitive at any balance. For the large majority of Australians, that’s the better deal.
Get a straight answer
This is a decision worth getting right — the setup cost and switching consequences aren’t trivial. A complimentary Donmont review compares your current fund against what an SMSF would realistically cost and deliver, so you decide with the full picture.
Frequently asked questions
Is an SMSF better than an industry fund?
Not for most people. An SMSF offers more control and can hold assets like direct property, but an industry fund is usually cheaper at any balance, includes cheap group insurance and the government compensation scheme, and carries no compliance burden.
At what balance does an SMSF beat an industry fund on cost?
Because SMSF costs are largely fixed, they tend to become cost-competitive only at larger balances - often cited around $200,000-$500,000+, depending on how the fund is run. Below that an industry fund is usually cheaper.
Are SMSFs covered by the compensation scheme?
No. SMSFs are not covered by the government's compensation scheme for theft or fraud that covers APRA-regulated funds like industry funds. Trustees bear that risk themselves.
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