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Investing for the long term is one of the best things we can do for our net worth. Superannuation is a very powerful tool to help us build wealth because of how earnings are taxed at a lower rate in superannuation for most people. Self-managed superannuation funds (SMSFs) give Australians more flexibility about what to invest in.
For a lot of people, just investing through a typical industry or retail superannuation fund with their preset investment options is enough. Being simple can be a great way to go.
But, going with an SMSF allows investors to make specific investments in a property (residential or commercial), a private company, and a wide range of other assets they can choose to invest in.
By investing in these assets, SMSF investors may be able to generate strong returns, and certainly unique returns that no one else can specifically access.
Through a combination of returns and how much money has been contributed, SMSF investors have built up an impressive amount of wealth. At June 2025, there were 653,062 SMSFs in total, with just over $1 trillion in assets.
Average superannuation balance for SMSF investors
The SMSF accounting software provider Class (owned by Hub24 Ltd (ASX: HUB)), one of the biggest providers in the sector, recently released its latest report on SMSF stats, including what ASX shares Australians are investing in.
Let’s look at what the Class 2025 annual benchmark report can tell us.
According to Class, the average length of time Class SMSFs have been established is 15.6 years, with around two-thirds of the SMSFs in place for more than a decade. That means they’ve had plenty of time to build up their asset base.
The software provider revealed that SMSFs administered on Class have an average overall fund balance of around $1.9 million, with an average member balance of almost $1 million as of FY25. Class said the data indicates that SMSFs are delivering outcomes for trustees and members over the long term.
When SMSFs are closed, it is typically much later in the journey, with an average wind-up age of 16.8 years and an average balance of $781,000.
How much is property involved?
Class was also able to inform us about superannuation balances that include direct property, which is interesting to know, considering that investing in a specific property is one of the main advantages of an SMSF.
Using FY24 data, the average fund balance was $1.4 million, where a residential property is held. The average residential property value was $749,000 among invested funds.
Class said this concentration in lower-balance funds can affect diversification and liquidity (negatively).
The average SMSF balance where commercial property is held was $3 million. The average commercial property value among invested funds was $1.2 million.
Where are SMSFs invested?
The latest ATO data available was from June 2023. According to Class, SMSFs had the following allocations:
27.5% to listed shares 17.5% to cash and term deposits 12.4% to unlisted trusts 10% to non-residential real property 8.4% to ‘all other assets’ 6.5% to limited recourse borrowing arrangements 6.2% to listed trusts 6.1% to other managed investments 5.4% to residential real property
As an advocate for ASX shares, it’s good to see that shares are the most popular investment in SMSFs. I think there are plenty of great ASX shares to buy today.