Self managed super funds vs traditional funds
Cost
There are set-up costs and fixed annual costs.
Investment knowledge
It is more likely that high investment and finance knowledge is required. If your SMSF doesn’t perform as you expect, the responsibility falls with you and your investment decisions.
Administration and regulation
High levels of time required for admin. Knowledge of SMSF regulations also required.
Insurance
Insurance premiums may be higher compared to a traditional fund, due to their ability to negotiate premiums and buy in bulk.
Flexibility
High – it’s your SMSF – you choose how you want to run it. If your SMSF is a victim of theft or fraud, you aren’t entitled to any compensation, unlike a traditional super fund which is protected to some extent by APRA and ASIC regulations to protect members’ finances.
Investment opportunities
A broad range of investment opportunities are available. Large scale projects like property development, infrastructure and private investments may not be available.