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Jeffrey Hutton is a Morningstar contributor.

Investment institutions such as BT Financial Group are cutting fees for their online platforms that make it easier to trade assets and access information, in a move experts say may accelerate the proliferation of self-managed super funds (SMSFs) and tempt trustees away from a growing penchant for cash and some key Australian equities.

BT Financial Group next week will introduce the Asgard Infinity fee-for-service investment platform, which charges a 0.3 per cent administration fee for the first $750,000 held in accounts.

OnePath's fee-for-service platform, the OneAnswer Frontier, has grown to $350 million in funds under advice since its launch in November last year. MLC introduced its Masterkey Fundamentals fee-for-service platform in 2006.

Volatile capital markets have erased gains in recent years, prompting some trustees to take advantage of new handheld gadgets such as the Apple iPhone and online cash management accounts to administer trades themselves, and avoid fees that could tally more than $10,000 on balances of $500,000 or more.

Trouble is, some trustees striking out on their own are likely to concentrate their holdings on what's transparent and easy to understand, such as term deposits and equities of trusted Australian companies with generous dividend payouts.

Re-engaging trustees with investment advisers may help reverse that trend, making it easier to tap alternative assets such as international equities, says David Rae, director at Canberra-based Beames and Associates, which is owned by Count Financial (COU).

"We've been through five years where market returns have been flat. The sector is facing pricing pressure," Rae says.

"Cutting fees is more likely to engage investors and improve information."

On average, SMSFs had 27 per cent of their holdings allocated to cash and term deposits and about a third comprising listed shares, according to Australian Taxation Office data.

"The potential right now is for funds to be un-diversified," Rae says.

Platforms should also consider tacking on more products as well as added services, such as reporting capital gains tax, Rae says.

"That would demonstrate an added advantage to online products," Rae says.

SMSFs make up about a third of the $1.2 trillion superannuation industry. Jason Marler, director of business strategy and operations for Russell Investments, says that number could grow as the proliferation of cut-fee platforms lowers the cost of setting up DIY superannuation.

Minimum holdings before mulling setting up an SMSF were thought to be around $400,000 and $500,000 in order for accounting and other fees to stack up, Marler says.

Even so, a new cap limiting anyone under 50 to stashing no more than $25,000 into their superannuation and still allowing them to benefit from the concessional tax rate of 15 per cent, may act as a drag, Marler says.