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A Self-Managed (do-it-yourself) superannuation fund is an individual, family or small business based fund of one to four members. For many years these funds were categorised at law as excluded funds. The DIY fund is a separate legal entity. This is what makes having a DIY fund different to holding a member account within a larger superannuation master trust or retail superannuation product.
A recent article prepared by the ASFA Research Centre describes DIY funds and how they compare to retail and other funds. Because of their small size, and the closeness of the relationship between the fund members and the fund trustees, excluded funds were subject to a lower level of regulatory supervision and had lower reporting requirements than other funds. They are called DIY funds because, compared with other funds, the fund members have a far greater say in how the funds operate.
DIY funds form the fastest growing segment of the superannuation industry. Australian Prudential Regulation Authority Statistics of March 2003 show 257,367 small funds with a total of 450,000 member accounts holding total assets of $106 billion.
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