Self-managed super and the huge investment choice

One of the key attractions of self-managed super is, of course, the huge investment choice.

Within the confines of superannuation law, SMSF's have a smorgasbord of investment choice. For instance, they can invest in direct commercial and residential property, direct shares, exotic assets, geared assets, term deposits and unlisted shares.

And no doubt many SMSF members would gain considerable satisfaction from knowing they have such investment freedom – even if they choose not to take full advantage of that freedom, at least for the time being.

In practice, how far do SMSF's go in exercising their investment choice?

An SMSF administration service released figures recently indicating that its 1,600 client funds overall held 33% of their assets in direct shares as at March 30, 40% in cash and fixed interest, and 14% in direct property.

Few funds appear interested in exotic assets such as artwork. The latest available Self Managed Super Fund Statistical Report, published by the ATO, indicates that only a very small amount of SMSF money is in exotic assets. 

The SMSF asset allocation statistics, released by the ATO and providers of fund administration services can be extremely useful to fund trustees. The statistics may, for instance, prompt a fund to review the effectiveness of its own asset allocation – perhaps under the guidance of a professional financial adviser.

The following article has been sourced from Vanguard Investments Australia Ltd.

Important Information

The above information provides an overview or summary only and it shouldn’t be considered a comprehensive statement on any matter or relied upon as such. The above information doesn’t take into account your personal objectives, financial situation or needs. It’s important for you to consider these matters before making any financial decision and I recommend you seek help from a financial adviser.