If you are still in doubt over how to use your pension money and you are not willing to entrust them to some bank or financial consultant agency, maybe the best option is self-managed superannuation fund. This recently new model of DIY superannuation fund is becoming more and more popular among the work force in Australia because of its flexibility and certain tax benefits it offers when it comes to fund investment. Basically, these funds can be organized by anyone who feels skilled enough to determine the best SMSF strategies that will generate high rate of ROI (return on investment) for the members. As for choosing the right strategy, these super funds offer several options that are more and less used by investors. We will try to describe the benefits of the most used ones.

Studies have shown that by 2013 three major SMSF strategies have taken 75% of all SMSF investments in Australia. These are: direct shares, cash and direct property.

Direct shares strategy means investing your money from superannuation fund in open shares on the market. As simple as it sounds, share investment requires special skills and knowledge to know when to buy or sell. Fund advisers should be able to choose the right timing when to collect and when to cut loses. With current volatile market there should be a good atmosphere among SMSF and non-SMSF investors. Also, you should be aware of the fact that taxation through SMSF shares offers great benefits compared to the standard taxation procedure. In general, the popularity of this DIY super fund strategy is rising although it is already pretty high.

The second best of these three major SMSF strategies is cash and fixed interest investment. This strategy in particular was not considered very safe in Australia until the Global Financial crisis in the period 2007-2008. Consequently, investors got scared of stock and property investment after the crisis and saw cash investment as a better option. But it turned out that this investment option had its risks. These risks include difficulties associated with inflation and uncertainty over whether your super will reach retirement goals. However it is cheaper to invest in cash with fixed interest than in stocks or direct property.

SMSF property investment is the least used strategy but that doesn’t mean that it is not as effective. Again, like share investment, dealing with property through super funds offers low or no taxation at all. Moreover, if you own the property for more than 12 months, you can collect 100% in tax returns. This and other detailed benefits are just some indicators of why investing your superannuation money in property is a safe and affordable way of getting higher returns.

Of course, there are many other SMSF strategies that have their own good and bad sides, but these three are the best and most used for now. But with the unstable ground on which today’s economy lies, it will be no wonder if less popular strategies become more popular in future.