Managed and self managed super funds

By nathan86

Many things are uncertain in today’s economy and you cannot expect high returns as your investment. People always looking for other options, which can give high superannuation. But they may be confused between managed and self managed super funds. Let’s see what the differences between both are.
Managed Funds-
Many corporate, industries, and retail funds have long been the norm for many people, they trusting that when it is time to retire there will be a healthy little nest egg sitting there, just waiting to be enjoyed. As you know that if anything has some advantages then there is no any doubt about its disadvantages, it automatically has some disadvantages also because nothing is perfect in this world.
Advantages:
1) You have to pay attention from your end to manage the fund.
2) The managed super finds looks after all of the legal requirements.
3) Managed super funds have been around for years.
4) A professional is responsible for a huge percentage of your money.
Disadvantages:
1) A managed fund is dependent on a bull market. So if the market falls over, your superannuation fund will go for suffer.
2) You cannot diversify your fund and also cannot manage your fund’s performance.
3) You don’t have any control where your money is invested. Your superior exposed to the investment of the managed fund.
Self Managed Super Funds-
If you want to have in charge of your own retirement then you should take on your own super and manage it yourself. You have to know about all the laws and regulation along with the finance and investment market to manage your own super. Although you will be armed with your sense of freedom, this type of funds has its own set of advantages and disadvantages.
Advantages:
1) You have full control on your fund.
2) You are free to select where you want to invest the money like stocks, bonds, cash, property etc.
3) You can save the percentage of your money which you did pay as different fees.
4) You are responsible to get maximum returns.
Disadvantages:
1) If you have not putted your 100% effort that is if you invest poorly and loose all your money then there is nobody’s fault, you are responsible for a huge percentage of money which is ultimately your future.
2) You must spend much time to manage your investment strategy and ensuring that you are investing on a right place.
3) You are the responsible to carry out all the required duties and adhere to all of the super laws you are bound to because you are the trustee of your self managed super fund.

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