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Is a self-managed super fund right for you?

So, you’re thinking of managing your own super fund. What could possibly go wrong?

The Australian Securities and Investments Commission (ASIC) has warned investors to think about the risks of setting up their own self-managed superannuation fund (SMSF), saying that many Australians have funds that aren’t suitable for their circumstances.

It is easy to be talked into setting up a fund by friends and financial advisers only to belatedly discover the risks and onerous responsibilities that go with it.

The regulator warns that while SMSFs may be an attractive option for investors wanting more control over their superannuation investment strategy, they require real skill, care and diligence to manage.

Red flag indicators

ASIC research found that SMSFs are not suitable for:

  • members with a low fund balance, particularly where they have limited ability to make future contributions
  • people who are not financially literate or have limited time to manage their own financial affairs
  • people who are not comfortable with legal responsibility - SMSF investors are responsible for their fund’s compliance with the law, even if they pay a professional to help.

Download the ASIC fact sheet, SMSFs: Are they for you? here

Finance facts

You can access further information on superannuation, investments and more via the Financial Literacy Service section of our website.

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