Capital markets are being transformed by the growth of self-managed super funds (SMSF).  But, what happens in future may be staggering.

New research shows that savings in SMSF are set to double in the next three years a middle income Australia leaves the 'big funds' to set up their own fund.

Some statistics:

- The number of funds is 503,320 as at March 2013, with 958,095 members and assets close to $500billion, just over 30% of the assets in super, with average assets of $569,000 per fund, and returns significantly in excess of industry funds.

- Forecasts are for a further 1.4million members to set up their own SMSF in the next three years, with $292,000 in average assets per fund.

What this shows is that middle-income Australia is seeking to control its own destiny, diverting investments out of industry funds (AMP, MLC, Colonial, etc), which have rigid services and often high fee structures.  There is a sharp rise in SMSF gearing to buy residential and other property.

The timing of this investment strategy is good, with lower interest rates, residential property set to grow over the next three years and equity markets looking precarious.

Treasury has recommended "no substantial change to superannuation" over the next five years.  Assuming this is true (let's be charitable), it's time to review your investment strategy and achieve not only tax free benefits but also more wealth for you.

The material and contents provided in this publication are informative in nature only.  It is not intended to be advice and you should not act specifically on the basis of this information alone.  If expert assistance is required, professional advice should be obtained.