A self-managed superannuation fund (SMSF) is a trust where funds or assets are held and managed on behalf of a maximum of four individuals, to provide future retirement benefits. Subject to certain exceptions, all members of an SMSF must be trustees of the fund or directors of the fund's corporate trustee.
The main rationale for establishing your own SMSF is the increased level of control you have, particularly around flexibility of investment choice. You become the trustee of your fund and therefore make decisions on your fund's investment strategy and the type of assets that are held within your fund.
Your SMSF can also invest in almost anything, including investments not usually available in a public super fund (however, these investments are subject to certain limitations and legal restrictions). This will allow your fund's investments to be customised to suit the precise requirements of members, before and after retirement.
To find out more about SMSFs, call 1300 LONSDALE (1300 566 732).