Reasons why Australians are choosing to establish an SMSF
June 10, 2018
SMSF Associated Cost
June 10, 2018
SMSFs can invest in traditional assets such as shares, property, bonds and cash. You can also invest in more complex financial instruments.
Superannuation law doesn’t impose what an SMSF can and can’t invest in, there are some restrictions on the entities a self-managed super fund can invest in and procure assets from. For example,
SMSFs can invest :
- Australian and international shares (listed and unlisted)
- Residential or commercial property
- Cash and term deposits
- Fixed income products
- physical commodities
SMSFs cannot:
- Acquire assets from any associated parties.
- Allow internal assets such as a loan, investment or lease of a fund asset to an associated party which exceeds 5% of total equity.
- Borrow money except in limited circumstances.
Retail and industry fund trustees make decisions to benefit all members, but with an SMSF you can choose where, when and how much to invest. This provides you with greater control and flexibility. SMSFs also provide a high level of transparency, allowing for deliberate exposure to certain industries, asset classes or ethical investing opportunities.
*It is best to seek professional advice if you are considering investing in more complex or non-traditional investments*
