Superannuation is a type of a retirement plan established by a company or an employer for their employees, wherein regular deposits are made which will in turn acts as a major source of income during retirement. Although, there are several retirement or pension plans to guarantee oneself a steady flow of income during that period, superannuation is mainly linked to the employer or the organization.
SMSF - self managed superannuation funds
Self managed super funds are not different from regular super funds maintained by employers; however the only point of differentiation between SMSF and other retail fund is that the former is operated and managed by the members in the funds themselves, without support from external sources. When you set up SMSF, it means the following.

• Super funds being managed by the members themselves will be have complete control over the funds operations.


• Members responsible for the funds perform the duties of trustees.


• The duties performed so forth are not remunerated in any way


• In a single superannuation plan, there maximum number of members allowed is five or less.


• One member cannot be employed or be an employee of another in the same fund

Before you establish an SMSF, it important to understand what the task entails in terms of duties and responsibilities towards the funds. Having a self managed super fund indirectly implies that you have greater control over your finances, which means that you have the autonomy to take decision pertaining to investments. From the responsibility point of view, the challenge of managing SMSF administration emerges. When considering Do It Yourself funds, it is essential to maintain the funds in compliance with the regulations laid down by the Australian Taxation Office (ATO).
Any individual, employed by another, self employed or any other working professional is eligible for SMSF loans. All a member has to do is make fixed and regular investment in a separate fund at fixed intervals for a specified time period, only to later reap optimum benefits. It is essential to note that funds which are maintained giving full regard to the guidelines laid by the governing body is eligible to reap maximum rewards.
Among various benefits of establishing SMSF, independence in making investment decisions is perhaps the most lucrative. For instance, SMSF property investment is the most favored sector where individuals like to invest their funds. Investing in real estate has proven to be an asset for members a super fund. After retirement, having one's own place will act as a buffer to an individual in times of a financial crisis.