Issue 44: To SMSF or not – How the sector performs against APRA funds

Alternative investmentsDiversificationInvestingNewsPortfolio ConstructionResearch

Issue 44: To SMSF or not – How the sector performs against APRA funds

Probably a question asked by many contemplating starting or continuing to run an SMSF. And rightly so as the decision to directly manage you retirement savings is one that should not be taken lightly by any member of an SMSF.

For some, it may also be the anticipated time involved with running an SMSF that turns them away. True, it is wise to actively involved with your SMSF, which can range from being fully hands-on to delegating some aspects of the fund’s activities to others. It is here that an accredited SMSF Specialist can help. To find one click here to use SMSF Connect’s Find a Specialist tool.

So, if you are committed to contributing the appropriate amount of time to running an SMSF, back to our question at hand – ‘how much is needed for one to perform well?’

The good news is that the SMSF Association, continues to build on earlier research into SMSF performance released in February last year, which covers the period 2019 to 2020. 

This showed that $200,000 can be a sufficient amount to commence and maintain an SMSF.

Recently, the SMSF Association again joined forces with the University of Adelaide’s International Centre for Financial Services (ICFS) to conduct further research into the financial performance of SMSFs over the period 2020-21. This period includes the challenging economic and investment times of the last 2-3 years as well as the strong turn around following the pandemic.

Sorry, this content is reserved for members of our SMSF Connect community.

Please register for a free community account to view this content or login below.

Login

If you are an existing member of SMSF Connect, please login below.

If you wish to learn more about joining the community, please click here.

Join the free community

Complete the form below to set up your free account and be regularly updated on SMSF and investing news and information.

  • Strength indicator

Learn more about the NEW 2020-2021 SMSF Performance research! 

Missed an Issue? Catch up on all articles from the SMSF Connect Investment Series below:

Disclaimer: The information contained in this document is provided for educational purposes only, is general in nature and is prepared without taking into account particular objective, financial circumstances, legal and tax issues and needs. The information provided in this article is not a substitute for legal, tax and financial product advice. Before making any decision based on this information, you should assess its relevance to your individual circumstances. While SMSF Association believes that the information provided in this article is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk. The information provided in this bulletin is not considered financial product advice for the purposes of the Corporations Act 2001.

Ian Irvine - Guest Contributor

Ian has been a keen investor for over 40 years and can draw on his experiences from both investing on his own behalf and also having worked in financial services for more than 30 years. Over this time, he has seen many changes that impact investors’ attitudes to in what and how they invest.

He started his career in what is now referred to as fast moving consumer goods (FMCG) or grocery, working for an Australian margarine manufacturer. In 1986, he was recruited to Westpac around the time of deregulation of the sector, where he spent 10 years before taking a role at AMP and then with ASX for 14 years up to the end of 2017. He continues to be involved with ASX; working on their educational programs.

In 1996, he and his wife established their own SMSF and again the experience and lessons learned regarding managing an SMSF over the years have provided him with many insights and ideas. He enjoys sharing these with others where these are helpful and always suggest that if an investor or SMSF trustee is unsure, that they should seek appropriate advice from a licenced professional.

Ian holds a B. Com (UNSW), and lives in Sydney and enjoys travelling to and meeting investors and SMSF trustee at the educational events with which he has involvement with from time to time.