A Self-Managed Super Fund (SMSF) stands apart from regular superannuation funds by offering you greater control over your investments and retirement savings. With an SMSF, you can tailor your investment strategy to suit your unique needs and preferences.

In contrast, regular superannuation funds are managed by professional fund managers who make investment decisions on behalf of their members. An SMSF, however, can have up to six members, all of whom are trustees or directors of a corporate trustee. Membership is typically limited to related individuals, and trustees cannot receive payment for their duties.

To maintain the tax concessions provided to Australian superannuation funds, SMSFs must comply with specific regulations. One crucial requirement is that trustees must document and implement an investment strategy aimed at maximizing returns while considering risk, ensuring diversification, and assessing the fund’s ability to pay benefits and cover costs. Failure to establish a compliant investment strategy can result in penalties for trustees.