An article on the Australian Financial Review talks about the rising fortunes of SMSF. To put things in perspective, had $500,000 been put in the year 2004 in some large fund, it would have accumulated close to $190,000 by 2012. In comparison, SMSFs would have amassed a profit of something like $345,000 over the same time range.
Nearly 1/3 of the $1.8 trillion superannuation sector is lying in SMSFs, and such phenomenal performance means we are in safe hands. SMSFs concentrate on allocating a majority of the fund value to our own country’s equities and cash and term deposits. The tendency to look overseas is quite limited both in terms of international shares and Exchange-traded Funds (ETFs).
On the other side of the coin, experts feel that SMSFs would have a roller coaster ride — really up at times and considerably low at other times — but the large funds would give the stability of consistently averaged out performances.
You can read the original article here.
