Australian self-managed superannuation funds

Investor Behaviour, Performance and the “Wisdom of the Crowd”

Self-managed superannuation funds (SMSFs) have been growing fast and comprise about a quarter of the total super funds in Australia. More than 1.1 million Australians self-manage their super funds. In this study, we examine the investment strategies, trading behaviour and performance of SMSFs in Australia. This project is based on a unique database of the daily equity trading activities of SMSF investors provided by SelfWealth Limited.

Research questions

  • How do SMSFs make investment decisions?
  • Do the SMSFs perform better than the market?
  • What are the sources of returns of SMSFs?
  • Is it possible to exploit the “wisdom of the crowd” in formulating investment strategies? Will such strategies outperform the market?