New research conducted by legalsuper has revealed the majority of its members do not want more investment options than they are already receiving.
The online survey of 1,300 members conducted among legalsuper's 38,000 member base, showed 55 per cent of respondents thought the 11 investment choices currently offered by the fund was "about right", while a further 23 per cent thought the 11 investment options were already too many.
In contrast, only 2 per cent of those surveyed expressed the desire to have more than 11 investment options.
"In the post-Cooper review phase it would appear timely for super funds to determine whether there is potential for cost savings by reducing the number of investment options they offer," legalsuper chief executive Andrew Proebstl said.
"Providing a high number of investment options can actually have a negative effect for both super funds and their members," he said.
A higher number of investment options has the potential to create an environment where the member does not end up making a choice because it is too difficult to do so, according to Proebstl.
"Super is complex and can be confusing. A lower number of investment options may be one way to simplify things for members," he said.
Proebstl cited fees as being another problematic item as a result of offering a greater number of investment options.
"A higher number of investment options costs super funds more money to establish and administer, increasing the costs and therefore the fees charged to members," he said.
Statistics compiled by The Heron Partnership in February of this year showed the investment options offered by super funds ranged from one to 525, with the median number being 16 and the average number of choices offered being 51.
