 A self managed superannuation fund (or DIY fund as they are often called), is a superannuation fund which is directly controlled by the Trustees and members of the fund. Trustees can decide what, when and how much to invest and when to make changes, giving greater investment flexibility.
The requirement that all members are Trustees or Directors of a trustee company ensures that each member is fully involved in the decision making process and prudent management of their fund. This includes control over investment decisions so that they can determine their own investment strategy and the appropriate mix of assets.
This does mean however, that Trustees are fully responsible for the decisions and operation of the fund in accordance with the relevant rules.
As the Trustees make the investment decisions, they have greater control over fees. By keeping transactions to a minimum, members may reduce the ongoing fees of the fund.
Whether or not a self managed fund is appropriate will depend upon each individual's specific circumstances, and in particular the level of funds to be invested and the skills and capabilities of the prospective Trustees/members.
Deciding to set up and run a self managed superannuation fund is an important decision that you should consider very carefully.
A self managed superannuation fund is just one way to manage your superannuation benefits. There are other types of superannuation funds available to you which you should consider before making a decision. A good place to start is by talking to a financial adviser. Need a financial adviser, click here. |