SMSF Investment Strategy

Trustees are required to prepare and implement an investment strategy for the SMSF. The investment strategy provides a framework by which investment decisions are made for the fund.

It should be unique to the requirements of the fund and its members. It should also be reviewed regularly and updated as required.

Preparing an investment strategy

The strategy must reflect the purpose and circumstances of the fund and consider:

  • investing in such a way as to maximise member returns having regard to the risk associated with holding the investment
  • appropriate diversification and the benefits of investing across a number of asset classes (eg shares, property, fixed interest, cash) in a long term investment strategy
  • the ability of the fund to pay benefits as members reach retirement and other costs incurred by the super fund

Investment options

Members can tailor their own investment strategies and select specific investments such as listed shares, managed funds, term deposits, cash and property.

Investment restrictions

Trustees must understand investment restrictions of an SMSF. You cannot:

  • carry on a business within the fund
  • access funds until condition of release is met (cessation of employment, full retirement, incapacity or death)
  • lend money
  • breach in-house assets test
  • use SMSF assets for personal use (ie don’t buy groceries with SMSF chequebook)
  • acquire certain assets from a member or related party

More information

If you're interested in finding out more, contact your Morgans adviser or a Morgans office near you.

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