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SelfWealth indices outperform ASX

Social investment network facilitator SelfWealth has released the 2015/16 results for its own indices that show they have outperformed comparable Australian Securities Exchange (ASX) benchmarks.

The SelfWealth data revealed over the past year its SMSF200 index outperformed the ASX200 by over 8 per cent.

Similarly, SelfWealth’s SW40 and SW30 indices delivered returns for the 2015/16 financial year of 9.05 per cent and 6.01 per cent respectively.

These results compared favourably against the ASX200 that produced a return of 3.09 per cent for the same period.

“What these results tell us and our members is that, together this information suggests the optimal number of stocks for a portfolio should be 30, but no more than 40,” SelfWealth founder and managing director Andrew Ward explained.

“It is this rich data that our SMSF members are benefiting from, of our top 20 performers within the SelfWealth community, 70 per cent of them are SMSFs.”

A growing number of SMSF trustees have joined the SelfWealth investment network since the launch of its share trading application earlier this year, operating on a flat fee per trade basis.

“While our flat fee brokerage solution is what is drawing SMSF trustees and their accountants to SelfWealth, the power is in the data and analytics we can provide them,” Ward said.

In addition to the appeal of the flat fee component of SelfWealth’s offering, Ward cited a lack of perceived value of financial advices and a more general lack of trust in the financial services sector as other growth drivers for his organisation.

The increased level of transparency and the ability for members to compare their SMSF portfolios against their peers was a further competitive advantage SelfWealth held, according to Ward.

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