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Jeffrey Hutton is a Morningstar contributor.

As one of the country's biggest industry superannuation funds fends off criticism that it lacks transparency and oversight, interest in self-managed funds (SMSF) is expected to balloon in part because so many people approaching retirement have been recently burned and think they can managed their assets better themselves

Already, self managed superannuation funds - or DIY super as it is commonly called - accounts for about a third of the more than $1.2 trillion superannuation industry, making it the largest and fastest growing segment, according the federal government's super system review.

By the end of the decade that proportion will increase to about half of superannuation savings as baby boomers retire in greater numbers and take advantage of investments that minimise their tax bill, according to Russell Investments managing director, intermediaries Patricia Curtin.  

"The DIY market has been driven by mum and dad investors wanting control and flexibility of their superannuation savings," "Many investors have questioned performance of their personal superannuation accounts and decided to take on that responsibility themselves," Curtin says.

The growing shift heightens concern that existing biases among those managing their own super toward property and Australian equities may become more pronounced, risking missing out on growth opportunities at home or abroad, or exposure to markets shocks where their funds are concentrated.

The most up-to-date figures from the Australia Tax Office date back to June 2008 but experts say they have probably not changed dramatically since then. The top asset classes chosen then by SMSFs were listed shares, which comprised 32 per cent, cash, including term deposits, which accounted for 26 per cent, while some 9 per cent was tied up in commercial property.

About 78 per cent of SMSFs buy shares directly in companies, compared with about 12 per cent for larger funds, Colonial First State senior technology manager Tim Sanderson says.

"The growing interest in do-it-yourself superannuation raises the issue of diversification. Is it smart to be exposed to just one country?" Sanderson asks.

The value of SMSFs are expected to double to about $800 billion by 2015, according to Westpac Institutional Bank head of sales Craig Keary.

In 2004 SMSFs numbered about 275,000 and were worth about $130 billion compared with 466,000 today, he says.

As education improves, balances rise and new products such as exchange traded funds proliferate, the trend toward self managed funds may help improve the diversity of asset allocation, Keary says.