Will self-managed superannuation fund investors survive?

Phillips, Peter J. ORCID: https://orcid.org/0000-0002-7094-5427 (2011) Will self-managed superannuation fund investors survive? Australian Economic Review, 44 (1). pp. 51-63. ISSN 0004-9018

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?

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Item Type:	Article (Commonwealth Reporting Category C)
Refereed:	Yes
Item Status:	Live Archive
Faculty/School / Institute/Centre:	Historic - Faculty of Business and Law - School of Accounting, Economics and Finance (1 Jan 2011 - 30 Jun 2013)
Faculty/School / Institute/Centre:	Historic - Faculty of Business and Law - School of Accounting, Economics and Finance (1 Jan 2011 - 30 Jun 2013)
Date Deposited:	11 Mar 2011 03:49
Last Modified:	24 Aug 2014 21:53
Uncontrolled Keywords:	SMSF; self managed superannuation; utility; risk; risk aversion
Fields of Research (2008):	15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150205 Investment and Risk Management 17 Psychology and Cognitive Sciences > 1702 Cognitive Sciences > 170202 Decision Making 14 Economics > 1402 Applied Economics > 140207 Financial Economics
Fields of Research (2020):	35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3502 Banking, finance and investment > 350208 Investment and risk management 52 PSYCHOLOGY > 5204 Cognitive and computational psychology > 520402 Decision making 38 ECONOMICS > 3801 Applied economics > 380107 Financial economics
Socio-Economic Objectives (2008):	E Expanding Knowledge > 97 Expanding Knowledge > 970114 Expanding Knowledge in Economics
Identification Number or DOI:	https://doi.org/10.1111/j.1467-8462.2010.00618.x
URI:	http://eprints.usq.edu.au/id/eprint/18633

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