Self-managed super under-performing

A study of self-managed super funds (SMSFs) has found that most are not doing enough to maximise the return on their savings. Analysis published in the Australian Economic Review found that funds should invest in 20 to 30 asset types to benefit from diversification but, of the 41 SMSFs it looked at the average was only 12. While standard commercial super funds have 5 per cent of their investment in long-term cash, the average for SMSFs was 22 per cent. Less than a third of the funds surveyed performed better than the S&P/ASX 300. Assets held by SMSFs have almost doubled from $177.9 billion at June 30 2005 to nearly $300 billion at the end of June this year and now have an average balance of $422,600.

Advertisement