What is a Self Managed Super Fund (SMSF)?
A Self Managed Super Fund (SMSF) is a private superannuation fund that you manage yourself, rather than relying on a large retail or industry fund.
A SMSF give you complete control over how your super is invested, from shares and property to term depsoits and other assets. That control comes responsibility. SMSFs must comply with strict Australian Taxation Office (ATO) rules. There are also some restrictions on the use of funds, for example you cannot buy yourself a house to live in. It must be an investment.
Running a SMSF involves setup costs, annual audits, and ongoing record keeping. They can be suitable for experienced investors with large balances (generally over $300,000) who want more control and flexibility, but they are not ideal for everyone. Someone who does not understand financial products or has a low super balance, would likely flounder with a SMSF.