There are no real disadvantages of establishing and running your own DIY Super Fund; rather, there are some issues which one must consider at the time of deciding to establish a DIY Super Fund. The reason why we have listed these issues is not to deter any person, but only to caution them.

Long-term investing in growth options within a super fund has the potential to produce an attractive nest egg at the end of an investor's working life.

The same may not be true of an investment in term deposits. And perhaps the greatest risk of all is to reach retirement age without sufficient savings to fund a comfortable retirement.

We spend approximately 30% of our life in retirement; it is paramount that an effective superannuation Investment strategy be put in place. In fact, any fund that wishes to obtain concessional treatment as a complying superannuation fund must prepare and implement an appropriate investment strategy.

Term deposits offer no capital growth and income is taxed, which could reduce your overall return. In contrast, growth investments (like shares and property) within superannuation have the potential to produce a capital gain in the long term. These investments are not taxed until they are sold and then only at a maximum tax rate of 10% is paid on net capital gains.

Historically, the long-term returns from cash are much lower than the long-term returns from shares and property. Therefore, it is unlikely that cash investments alone will achieve the required nest egg.

Income generated from these growth investments is taxed at a maximum of only 15% per cent and, if the income is from Australian shares, may include franking credits which will further reduce the tax level.

With good investment management, investors can hope to achieve their retirement goals.

The risks associated with not complying with the requirements of the SIS legislation are greater, as Trustees may not necessarily have the required level of knowledge to operate the fund themselves and their advisors / administrators may not be competent either.

This could be overcome, if you choose us to be the administrators of your DIY Super Fund. UC Services is a specialist firm of accountants, helping trustees to comply with all APRA and ATO's requirements.

The costs of managing the fund may be higher than those relating to public funds. This may happen if there is a low account balance within the fund and the efficiency with which investments are managed.

Hence, UC Services does not recommend prospective Trustees to establish a DIY Super Fund unless the existing balances of all the members total to $50,000.

However, trustees may decide to establish a DIY Super Fund with lower existing balances, if they are confident that they can offset the high cost by better performance or higher contributions are expected in future years.

All members of the fund must understand the regulatory burden associated with DIY Super Fund and must ensure that fund audits and tax returns are completed and submitted to the ATO each year on time.

Although UC Services is competent in preparing the accounts and tax return, the ultimate responsibility is on the trustee's shoulders.

Not every one is suited to running their own super fund, to successfully run a fund, trustees must have the ability to understand and absorb the superannuation regulations; the financial acumen to invest wisely for the long term; and the time to spend to appropriately administer the fund and maintain important records. This could be a big ask for some people.

As superannuation is considered a core savings vehicle for retirement, investments within a fund must be capable of delivering a sizeable lump sum at the end of a person's working life in order to expect a reasonable living in retirement.