What the Research Actually Shows

The University of Adelaide has studied SMSF performance using one of the largest SMSF datasets in Australia — second only to the ATO’s own data — led by Dr George Mihaylov, Senior Lecturer at the University of Adelaide. The research is designed to mirror how APRA measures performance for APRA-regulated funds, using actual financial statements rather than self-reported returns, which is part of why the findings carry weight.

Across the past six financial years, the research shows SMSFs outperforming APRA funds by around 1.5 to a little over 4 percentage points at the median. That’s a median comparison — results vary widely depending on which APRA fund, or which SMSF asset allocation, you’re actually comparing.

You can read more on this research via the SMSF Association’s coverage of the University of Adelaide’s findings.

Why the Gap Tends to Show Up in Down Markets

In general, SMSFs tend to perform better when markets are contracting, while APRA funds tend to perform better during growth periods — largely down to asset allocation. APRA funds typically hold more in international equities during expansionary markets; SMSFs typically hold less, or none. SMSFs also tend to run overweight cash positions, and tend to show more variation fund-to-fund, given the wide choice and direct control trustees have over their own asset allocation rather than a fund manager dictating it for them.

None of this means every SMSF beats every APRA fund — the research compares medians, so you can underperform or outperform in either vehicle depending on what you actually invest in.

Why Investors Take Control of Their Super

Taking control of your own super’s financial destiny comes with real advantages:

• Wider choice of asset class — including direct property, which most APRA funds don’t offer at all.
• Control over what you invest in — and when, rather than a fund manager making that call on your behalf.
• The ability to use leverage in the right circumstances — commercial and business real property can still be geared inside an SMSF, which lets a fund control an asset worth several times its deposit.

Used well, leverage can meaningfully amplify a fund’s exposure to an asset class. It also amplifies risk in the same direction, which is why the strategy — not the property — has to come first. We set out the full mechanics of gearing inside super on our SMSF Loans page.

Your Three Paths Into SMSF Property Today

A 13.22C unit trust is worth flagging separately from fractional investment above — it’s a private structure between an investor’s own outside-super capital and their own SMSF (starting ownership splits vary — 99/1, 80/20, or otherwise, and the SMSF can acquire further units over time), not a pooled scheme with other investors. It suits a narrower group: meaningful super assets, real capital or equity outside super, a long time horizon, and a genuine appetite for the added structural and compliance cost. We’ve set out the full mechanics, the risks and who it does and doesn’t suit in our guide to residential SMSF property after the 2026 LRBA changes.

Not sure which of the three fits your fund? Our SMSF Pathfinder takes about 30 seconds and points you in the right direction.

What a Property Needs to Do for Your Fund

Whichever path fits, the property still has to earn its place in the fund’s investment strategy — not the other way around. Before comparing individual properties, it’s worth being clear on what job the property needs to do: rental income, capital growth, diversification, or building assets during accumulation versus generating income closer to retirement. That answer can change which property, and which path, makes sense for you. We go through this in more depth on our Self-Managed Super Fund and SMSF Investment Strategy pages.

The property must serve the fund’s strategy — not chase a headline return.

The properT network Approach

We start with your fund’s strategy, not a listing. Ask your accountant or financial adviser to confirm your SMSF’s investment strategy and risk profile, share it with us, and we’ll help you work out which of the three paths above — and which property within it — actually fits.

Explore the properT network Family of Sites

SMSF property is one part of a much bigger picture. Our other sites cover investment property more broadly, by location and by strategy:

• properT network — our main site, covering property investment strategy across personal name, trust and SMSF ownership structures.
• Investment Property Queensland — investment property opportunities across Brisbane, South East Queensland and regional QLD.
• Investment Property Melbourne — investment property opportunities across Melbourne and Victoria.
• Downsizing for Retirement — downsizing and super contribution strategies for retirees.

This is general information only and does not take into account your personal objectives, financial situation or needs. It is not financial, legal or tax advice, and the performance research referenced above relates to historical fund performance, which is not a reliable indicator of future returns. Speak with your accountant or financial adviser before making any decision about your SMSF.