Pooled investments in SMSFs equates to approximately $192 billion, over a third of the size of the entire retail managed funds sector.

Meanwhile, the report found that the allocation to cash among SMSF investors has plummeted. In 2013, SMSFs held nearly one-third of their investments in cash, while in 2025 cash makes up just 16 per cent.

David Gallagher, executive director of research at Rainmaker Information, said SMSFs have shifted their asset allocations over the past decade for a variety of reasons, but in more recent times have shown a greater tendency to increase exposures away from cash to include other assets offering higher returns and therefore better hedges against inflation.

“SMSFs over the past decade have also increasingly demonstrated their growing sophistication in executing their investment arrangements in an ever-competitive superannuation landscape,” he said.

He continued that while equities have the most fluctuation in terms of allocation changes year-on-year, the allocation of 36 per cent in 2025 is sitting at almost the same level as it was in 2015.

“Property has also stayed stable, currently sitting at 16 per cent of all funds invested in SMSFs,” Gallagher said.

“Overall SMSFs hold $1.0 trillion on behalf of 1.2 million members through 646,400 funds, however, they are no longer experiencing the rapid growth that was once a feature of this segment.”

The report found that the rate of growth for SMSFs has slowed dramatically since the introduction of the Transfer Balance Cap in 2017.

“In the eight years ending March 2025, their total assets had grown at 6.6 per cent, about half the 13.2 per cent rate of the not-for-profit super fund segment,” the report stated.

“The number of SMSFs increased by 20,000 in 2024, an increase of 3.2 per cent. Retail super funds grew slower than SMSFs over eight years, rising just 4.7 per cent, however, in 2024 their growth was 13.1 per cent.”