Why there is a need to set up a self-managed super fund (SMSF) instead of going with a retail or industry superannuation fund?

However, there are three main benefits to an SMSF: cost, freedom, and control.


When the question arises of taking important decisions such as how benefits can be paid to members when they retire or in the event of a member’s death how death benefits are paid, an SMSF provides you the freedom and flexibility.

Instead of cash, you will also have the option to have your fund payout in assets.


An SMSF is self-managed and it provides you control over the decisions made in the superfund. You have the power to select and develop an investment strategy that is tailored according to needs and in all investment decisions (unlike retail or industry super funds) it has a direct say.

You will get to have an access to a wider choice of investment options such as real estate, corporate bonds, listed shares, and managed investments. You will even have the ability to buy or sell individual investments whereas other self-managed superfunds Chatswood funds do not offer this service.

To give you leverage for certain investments there is also the option for you to borrow within your SMSF.

For certain tax events that are not available in a public offer fund, an SMSF will also allow you to plan and structure effectively.


The costs for running your own superannuation fund are not dependent on the total amount of assets you have and is mostly fixed. There are few superannuation funds that usually charge a percentage of assets as their fees. Hence the higher your account balance the more you pay.

Therefore, having an SMSF would provide greater cost benefits when your superannuation funds/assets exceed a certain amount. You can pool your funds together and share the fixed costs if you have other members in your super fund.

A Self-Managed Super Fund can offer a wide range of benefits. However, it is not suitable for everyone – and in case you are not acquainted with investment strategies and superannuation tax laws, it is highly recommended that before setting up your own SMSF you seek professional advice from a financial planner.