Will self-managed superannuation fund investors survive?

Article

Phillips, Peter J.. 2011. "Will self-managed superannuation fund investors survive?" The Australian Economic Review. 44 (1), pp. 51-63. https://doi.org/10.1111/j.1467-8462.2010.00618.x
Article Title

Will self-managed superannuation fund investors survive?

ERA Journal ID18190
Article CategoryArticle
Authors
AuthorPhillips, Peter J.
Journal TitleThe Australian Economic Review
Journal Citation44 (1), pp. 51-63
Number of Pages13
Year2011
Place of PublicationMelbourne, Australia
ISSN0004-9018
1467-8462
Digital Object Identifier (DOI)https://doi.org/10.1111/j.1467-8462.2010.00618.x
Web Address (URL)http://onlinelibrary.wiley.com/doi/10.1111/j.1467-8462.2010.00618.x/pdf
Abstract

The relative risk aversion coefficient that characterises
the representative self-managed superannuation fund (SMSF) investor reveals not only how much that investor dislikes risk but also other information about the investor’s economic characteristics, including how his or her allocations to risky assets change as his or her wealth changes. Determination of the relative risk aversion coefficient for the average SMSF investor reveals a value of 5.05. This value is too high to be consistent with logarithmic utility. This is significant because it implies that SMSF investors may be too risk averse to maximise the expected growth rate of wealth share accumulation. We are left to consider a very important question: Will SMSF investors survive?

KeywordsSMSF; self managed superannuation; utility; risk; risk aversion
ANZSRC Field of Research 2020350208. Investment and risk management
520402. Decision making
380107. Financial economics
Byline AffiliationsSchool of Accounting, Economics and Finance
Institution of OriginUniversity of Southern Queensland
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