SMSF returns are competitive with large funds
Size matters when it comes to the investment performance of self-managed super funds (SMSFs), but not as much as we’ve been led to believe.
The latest research shows investment returns of SMSFs with a balance of $200,000 or more are comparable to returns from much larger funds regulated by the Australian Prudential Regulation Authority (APRA), with several provisos.
To compete with the big end of town, SMSFs must be well diversified and not hold too much cash. SMSFs that use an adviser also have an edge over their non-advised peers.
That said, SMSFs tend to outperform APRA funds in depressed markets and underperform in good years. More on this later.
A report titled Self-managed Super Fund Performance 2022–23 (the…
