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Super Funds


Redemption is another word for getting your money out. It's vital that each investor understands the redemption regime of their superannuation fund.

If the fund is locked you will be unable to get your money out until you reach a certain specified age. A few exceptions to this rule exist, as in the case of moving overseas and transferring the fund to another registered scheme. Most funds will, however, allow you to redeem a limited amount each year. This is known as "restricted access benefits", which may allow redemption of up to 20% of your fund.

It's important to realise that redemption of both locked and unlocked funds are at the discretion of the fund manager. Their intention will be to refund your money in the timeframe set out in the investment statement. However, they do have the right to halt redemptions in extreme situations, if in the best interests of the fund. Note, though, that redemptions are only very rarely frozen.