Can super fund members directly invest their super balance?

If you are keen on investing your super directly, you should first check if your super fund allows direct investment by members. Even then, you can probably only choose to invest in a combination of exchange-traded funds (ETFs), listed investment companies (LICs), index funds, and term deposits, depending on your super fund. 

For instance, your super fund may only let you invest in a specific index fund or a fixed combination of investments, usually to ensure that you spread your investment as evenly as possible. On the other hand, when the super fund manager invests your money, they can invest in property and shares as well, so your investment portfolio is more diversified. 

Note that your super fund may only allow you to invest your super directly when the balance exceeds a specified minimum, with the trustees or managers handling much of the investment even then. Also, you may need to open a cash transaction account and use the money in it to fund your investments. Check if your super fund requires you to transfer a certain amount of super into this account and if you have access to online investing tools. 

Remember that each super fund has different investment strategies and regulations, which can also affect direct investments by members.

Being able to invest your super directly may give you more control over how much you want to invest and for how long, even if you have fewer options. Also, directly investing your super can help you understand how investing super works, particularly if you plan to set up a self-managed super fund (SMSF) in future. 

Consider comparing the costs involved in making investments using your after-tax income rather than your super. You may also find it easier to manage your existing super account with this understanding. Further, some super funds offer administrative services which take away the hassle of dealing with investment-related paperwork that you may not be able to avoid when investing your earnings. 

Regardless of whether you invest your super or your income, you need some expertise - if not professional guidance - to understand your investment. Monitoring your investments can also be significantly time-consuming, and you may need to ensure your investments comply with the regulations put in place by your super fund.  

Further, investing your super directly rather than letting your super fund manager handle your investments can mean paying higher brokerage fees. In addition, you also have to worry about market performance and what to do if your investments do not deliver profits. Considering that directly investing your super is a long-term activity, you may end up with little to show for your efforts.