So you can't get diversification under $200,000? Does this mean that everyone with under $200k sitting in an industry or retail super fund is not seeing the benefits of diversification? Your premise suggests that as soon as I hit the $200k mark, all of a sudden I'll have a 'eureka' type revelation and realise I need to diversify.. With as little as $50k I can diversify by purchasing $20k in managed funds, $10k bullion, $10k direct shares, and even throw in a $10k term deposit.

Even when I have $150k are you telling me that the benefits of diversification still won't show?

This $200k mark that is thrown around certainly used to be the case when you were charged upwards of $4k in administration. But administering a self managed super is a fraction of the cost it used to be. A simple Google search will back this up.

Obviously a SMSF is not cost effective for extremely low balances but $200k? Really?

Managing your own super is about control and flexibility, not just how much super you have. This really needs to be part of the conversation. This arbitrary number $200k is just lazy and outdated.