Laura Millan writes a piece for the Financial Standard where she talks about accelerated trading from the yard of SMSF investors. The market has been volatile of late and investors are not missing the chance to buy cheap while the market is trading low.
SMSFs trading high buoyed by market lows
The week that ended on 28th August included the day of single-biggest drop over one day since the Global Financial Crisis. Trade patterns clearly show there had been greater ‘buying’ and SMSF-investor involvement as a result.
Three noticeable trends
The trend exhibits three aspects: 1) that the SMSF investors are hardly conservative in their approach and 2) that they keep an eagle-eye on the market and 3) that the SMSFs trade equities at least twice as much as other retail investors.
The SMSF investment accounts are not dormant as perceived
It is a widespread notion that the SMSF investment accounts are dormant which, however, is just not the case. In fact, SMSF investors have a much more diversified portfolio in comparison to the retail investors. They have 14 stocks on an average compared to 7 held by retail investors on an average.
You can read the original article here.
SMSF has grown a lot as a Super fund sector over a very short period of time. Amidst shouts from the critics, it has held its own and galloped ahead of the retail funds and other industry funds. And all this despite lacking prudential regulations! There are a lot of myths regarding SMSF and I am glad that the article above does its bit to debunk those.