The size of a superannuation fund certainly affects its performance. New
research demonstrates how big funds benefit from economies of scale
through better gross investments, lower investment expenses and lower
operating costs. Typically, not-for-profit industry funds are the
winners, clearly outstripping their retail counterparts. Industry
experts, however, suggest investors be mindful of exceptions to the
rule. So why do members plug on with lower-return smaller funds? Lack of
insight and interest keep them hanging in by default. But the good news
is that almost all super funds look set to grow with the incremental
shift in compulsory super contributions from the present 9% to 12%.