Your SMSF investment strategy and portfolio

Investment EducationSMSF InsightsUnderstanding SMSFs

Your SMSF investment strategy and portfolio

As a trustee you are required to review your investment strategy regularly to ensure it continues to reflect the purpose and circumstances of your fund and its members

An SMSF investment strategy must take into account the following:

  • The risks involving in making, holding and realising the SMSFs investments, their expected return and cash flow requirements of your fund.
  • The diversification and composition of your SMSF investments.
  • The liquidity of your SMSF investments, having regard to expected cash flow requirements.
  • Your SMSFs ability to pay current and future benefits to the members.
  • Considering whether to hold insurance cover for each member of your SMSF.

An important requirement for you as trustee of your SMSF is to have an investment objective and a strategy to achieve that objective before you start to make decisions about how you want to invest your SMSF’s money.

Whatever assets you choose for your SMSF to invest in, there must be a clear and obvious retirement purpose in the choices you make. Of equal importance is that the investment objective and strategy is not set in stone. You can choose to change the investment objectives set for your SMSF at any time.

A key aspect of an investment strategy is to consider the diversification of your fund’s assets.  Diversification of your retirement savings across different assets and regions is a key in protecting your fund from volatility in financial markets over the long-term.

While it is important to keep track of events that affect financial markets and your superannuation savings, it is important to remember that superannuation is for the long-term and that sometimes, short-term decisions can do more harm than good.  A good investment strategy that keeps you disciplined and focused on the long-term is essential.

So what can you invest in?

Sorry, this content is reserved for members of our SMSF Connect community.

Please register for a free community account to view this content or login below.


If you are an existing member of SMSF Connect, please login below.

If you wish to learn more about joining the community, please click here.

Join the free community

Complete the form below to set up your free account and be regularly updated on SMSF and investing news and information.

  • Strength indicator