THE $725 billion self-managed superannuation industry received the first of what some hope may be a series of wake-up calls this week when some were denied compensation from the collapse of Trio Capital.
In contrast, investors in APRA-regulated funds will receive around $55 million in compensation, funded through an industry levy of 2c for every $100 invested.
Industry Minister Bill Shorten is on a mission to highlight the advantages of being in an APRA-regulated fund ahead of his next decisions on the Cooper review reforms, due in the last week of this month.
Self-managed funds have grown quickly, in part because until the GFC hit the bull market made the game look easy, and in part because there is a huge industry that makes money from telling people how to manage their own money.
There are also many people who can manage their own money better than any fund manager could.
Related Coverage
* Super is not as safe as you think Herald Sun, 2 days ago
* Novices, take Trio as a warning The Australian, 2 days ago
* DIY super funds entitled to Trio compo The Australian, 4 days ago
* DIY funds to put case for compo The Australian, 4 days ago
* Super fraud victims get $55m payout Adelaide Now, 4 days ago
The point is that in doing so you become your own trustee, you are responsible for your own investment decisions, and if something goes wrong then nine times out of 10 you are the one to blame.
That reality doesn't sit well with most people particularly in the light of the fraud at Trio.
http://elly-mcqueen.newsvine.com/_news/2011/04/19/6494497-fisher-capital-management-world-newswarning-for-self-managed-super-funds
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