Self managed superannuation funds (SMSF) are just as likely to be 'bought' by individuals as opposed to being 'sold' to individuals by financial advisers, new industry research has found.
CPA Australia research found family and friends were the biggest influence in people's decision to set up an SMSF with 23 per cent of respondents drawing predominantly upon this group during establishment.
In comparison, 22 per cent of those surveyed said they had relied most heavily on the advice of their financial planner in their decision to start and SMSF, with another 19 per cent revealing an accountant was their greatest influence in the process.
The results do not support concerns expressed previously by the government that SMSFs were being oversold in the market.
However, the survey did confirm trustee education continues to be an area SMSF trustees need to work on with only 51 per cent of participants saying that they were trustees of their fund.
It also found 70 per cent of respondents were not sure or thought that SMSFs were not allowed to use gearing.
Despite these statistics 69 per cent of SMSF members believed they had a good understanding of their obligations.
On a positive note 76 per cent of those surveyed said the main purpose for running their own SMSF was to provide benefits to a member on or after retirement or to provide benefits to a member upon reaching preservation age. This reflects that the large majority of SMSF trustees were maintaining their fund for the right reasons.
The study was performed by Di Marzio Research on behalf of CPA Australia. The survey was online and enlisted responses from 1251 people over the age of 18.
