Retail manager makes industry fund noises

Comsumers have been warned to be wary of the financial services industry’s marketing hype in the lead-up to choice of fund, with Advance Asset Management cmts

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She said those waiting to set up do-it-yourself (DIY) funds were particularly at risk of making decisions without exercising enough diligence.

“DIY is the fastest growing area of the superannuation market and that’s where the risk is,” Mulligan said.

Giving consumers the ability to extract superannuation guarantee contributions from existing corporate super funds would create “a whole new class of investors who previously might not have had the critical mass to set up a DIY fund”, she said.

According to Mulligan, as many as 5 per cent of investors could be considering starting up DIY funds after July 1.

“Typically the investor setting up a DIY fund is well-educated and wants control… but they have not been through PS 146, they are not a financial planner,” she said, adding education and a knowledge of the market could not replace the assistance of a qualified professional.

“The advice and solution is simple and hugely important for the future of millions of Australians: stop, consult your planner or take informed professional advice about super choice and the impact it will have on your superannuation fund — then act,” Mulligan said.