Factors Influencing SMSF Fund

As the markets have still not recovered from the recession, many people are looking for options to set up an SMSF (Self-Managed Super Fund) to get better returns on their invested money.

The USP of this fund is that you along with your SMSF auditor have the complete power to manage it and there are no restrictions and limitations on the investment choices, you can easily rotate the fund in different directions as per your choice.

But getting the SMSF fund audit regularly ensures that the fund is set up accurately and properly. Setting up of an SMSF is a crucial decision to make. There are certain factors which should be considered to enjoy better returns from it. These are:

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Trustee Structure:

The set up begins by selecting a trustee structure, the choice is yours whether you want an individual trustee or corporate trustee structure. It is important to consider your requirements before you finalize about the trustee structure.

Trust Deed:

Trust deed includes all the rules which your fund must comply with. You must think when there are government rules, and then what rules must your trust deed contain.

Basically, the trust deed contains all the details of all the members, establishment fund, operational matters, voting rights of the individual members, etc.

Also, not all the trust deeds are similar, you must get one prepared for your business from a reputed solicitor which has good experience in preparing documents for SMSF set up. The deed also has to be updated on a regular basis with the changes in the law.

Investment Strategy:

In accordance with the investment strategy, a trustee of the fund is liable for the fund. The investment strategy must be planned accordingly so that it yields a good profit over a long period.