Superannuation funds are not responsible for making superannuation contributions for employees. That is a legal requirement for employers, i.e. to pay an amount equal to the current rate of 11% (which may be mentioned as 9.5% in Business Studies textbooks) of an employee's salary. However, that payment does not go directly to the employee. Instead, it is paid to the employee's superannuation fund. Essentially, this money, which accumulates the more a person works, is to be claimed by that person when they retire or reach the eligible age.
This brings us to the main activity of a superannuation fund, which is to invest the money that it receives from superannuation contributions in a range of areas, which can include company shares, property and managed funds. This is done so that the members of the superannuation fund (the employees of a business) can earn investment returns on the money.
Both aspects of superannuation, that is, the concept of superannuation as well as superannuation funds are important to know. This is mainly because questions that target this part of the "financial institutions" syllabus dot point can be diverse. For example, you may be asked a question that would require you to include an explanation of the concept of superannuation. You may also be asked a question that would require you to cover superannuation funds, or perhaps a question that would require you to cover both.
I hope this helps!
