Top SMSFs outperform top APRA funds

Mike Taylor

Managing Editor/Publisher, Financial Newswire

13 March 2026

The top 25% of self-managed superannuation funds (SMSFs) achieved rates of return of at least 13% over the five year period to the middle of 2024, compared with just 9.5% for the top 25% of funds regulated by the Australian Prudential Regulation Authority, according to new research.

The research, conducted by Adelaide University’s International Centre for Financial Services (CFS) has been published by the SMSF Association which claims it demonstrates long-term strength and resilience of the SMSF sector.

According to the SMSF Association, the research found that over the five years to 30 June 2024, SMSFs achieved an average rate of return 1.1% higher than APRA-regulated superannuation funds.

It said this followed similar findings for the five years to 30 June 2023, where SMSFs similarly outperformed by 1.2%, demonstrating a pattern of sustained performance.

However, the university’s own conclusion noted that SMSF SMSFs “can underperform the APRA fund sector, in specific years, when financial performance is captured using median rates of return (RORs).

It said the result in question “is particularly typical of years characterised by financial expansion and market growth”.

While reinforcing the importance of the research findings, SMSF Association chief executive, Peter Burgess noted that self-managed funds are not suitable for everyone but remain “a compelling option when they are used under the right circumstances and managed effectively”.

He also referred to “recent instances of unscrupulous operators using high pressure tactics, encouraging individuals to establish an SMSF despite it not being in their best interest”.

“For Australians seeking greater flexibility, control over investment decisions, estate planning advantages, and the ability to tailor strategies to their individual circumstances, establishing an SMSF can be a highly effective structure – particularly when supported by specialist professional advice,” he said.

The SMSF Association said the Adelaide University research again showed a more significant spread in the range of performance outcomes for SMSFs relative to APRA funds, underscoring both the opportunities and risks involved.

“While this does emphasise the importance of being supported by specialist professional advice for the best results, it also highlights the scale of opportunity and outperformance potential of SMSFs for aspirational Australian investors,” it said.

ICFS Project Lead, Dr George Mihaylov, said the SMSF sector has demonstrated remarkable resilience and strength in FY24, delivering competitive performance and continuing to demonstrate its medium-term value proposition over successive rolling five-year windows.

“The data once again highlights the distinct performance profile of SMSFs. While APRA funds outperform SMSFs at the median, stronger upper-tail outcomes in the SMSF sector often lift average SMSF returns above their institutional counterparts.”

“Our data suggest that a majority of SMSFs achieve performance outcomes that are either comparable to, or exceed, the performance of a typical APRA fund. However, we also consistently find a smaller cohort of SMSFs that need help, both in the way they allocate their assets and in terms of their scalability,” Mihaylov said.