A self managed superannuation fund (SMSF) is a superannuation fund with fewer than five members and that each of those members is a trustee of the fund or a director of the trustee company.
A superannuation fund is a scheme for the payment of superannuation benefits upon the retirement of the members of the fund. Superannuation funds is Australia receive concessional tax treatment whilst in the growth phase (the years to retirement) and the payment phase (years after retirement) . In return for the concessional tax treatment, strict rules and harsh penalties are in place to ensure that the funds invested are retained for the retirement benefits of the members.
A self managed super fund is a form of trust and requires a trust deed. The activities of the fund are determined by the trust deed and legislation. Self managed superannuation funds are popular because of the control that it provides members to make their own investment decisions and to invest in assets that are excluded from the investment portfolios of managed investment funds.