DIY super or self managed superannuation fund (SMSF) is gaining popularity as people seek to save the cost of fees, but experts advise that anything under $200,000 for DIY super is risky and liable to lose you more than you save due to administrative costs and the advice you need to seek from professionals.

That said, if you are the sort of person who has the time and expertise to put into a SMSF, then you may find it is just what you wanted. You will need to acquaint yourself with the various legislative requirements and trust laws that you need to comply with. The first step is to establish the trust, for which you will need the services of a solicitor or accountant. While they can help establish the trust, they cannot give other advice unless they are legally qualified.

All members of the SMSF must be trustees and will be legally responsible for the running of the trust. The form must be submitted to the Tax Office, who will issue you with a tax file number and an ABN or Australian Business Number. An investment strategy is the next step to implement, so help from a financial advisor may be necessary. Then you need to open a bank account. It should be in the name of the fund and will keep the fund monies separate from your personal finances.