The number of new self-managed super funds has fallen for the first time in four years as improved offerings from industry and retail funds take the shine off DIY super.
The number of new self-managed superannuation funds has fallen for the first time in four years as improved offerings from professionally managed funds and market volatility combine to take the shine off DIY super.
“Self-managed super is a really, really important sector, but it’s not the premier sector any more ... there was probably a little while where we all drank the SMSF Kool-Aid.”In November last year, SMSFs had $865 billion in assets, having been overtaken by not-for-profit and trade union-linked industry funds, which held $1.08 trillion in assets under management.
“Although you have the freedom of investing anywhere, you have to be really cautious of where you’re putting your money and not risking your money.” Financial adviser Colin Lewis of Fitzpatricks said his firm had advisers looking to get clients out of SMSFs, where there was no need to have one. “Aside from many legitimate reasons to establish an SMSF, a common reason is the belief of being about to outperform other public offer funds. Reality often differs from perception and the grass isn’t always greener on the other side,” he said.“When investment markets are performing well it’s not as difficult to replicate stronger performance, however when volatility emerges it’s not always as attractive to essentially be your own super fund.
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