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SMSF Investments Strategy

SMSF Investment Strategy

When it comes to implementing your SMSF investment strategy, you can invest any assets in your self managed super fund if the laws allow you to do so. iCare Super does not put any restrictions on how and where you should invest, which enables you to consider everything from buying shares through to setting up a SMSF to buy property.

SMSF Administration Service has certain investment rules:

  • Having an SMSF investment strategy that states the objective, risk diversification and investment allocations of your SMSF
  • All investments, including buying property through the SMSF, are to be completed on an arm’s length basis.
  • Restrictions on SMSF Borrowing – the super fund can borrow to for the purpose of:
    1. Covering settlement of securities transactions, but not exceeding 7 days and 10% of the value of the fund assets
    2. Benefit payments, but not exceeding 90 days and 10% of the value of the fund assets
    3. Limited recourse borrowing agreement
  • Restrictions on lending and providing financial assistance to members
  • Restrictions on the acquisition of assets from related parties
  • Restrictions on investments in in-house assets.

Possible Investments

You can have the following investments as part of your SMSF investment strategy:

  • Any bank accounts
  • Cash, term deposits and fixed interest securities
  • Australian listed shares or trust units
  • Foreign listed shares or trust units
  • Managed funds
  • Residential or commercial properties
  • Bonds
  • IPOs
  • ASX listed warrants
  • Contracts for Difference (CFDs)
  • Exchange Traded Options (ETOs)
  • International shares
  • Foreign Exchange (FX)
  • Metals and commodities
  • Crypto Currencies
  • Collectibles
  • Unlisted Shares or Trust Units

iCare Super only provides non-advisory services for your SMSF investments. If considering SMSF property investment, you may need corporate trustees in place to oversee the transaction.

Conservative vs. Aggressive Investment Strategies

When it comes to investing for your financial future, there’s a spectrum upon which your SMSF investment strategy will lie. At one end is an aggressive investment strategy, which typically appeals to investors looking for the highest possible return, but this also comes with a high degree of risk. At the opposite end is conservative investment, which doesn’t generate as high a return but carries with it much less risk and therefore provides a more consistent, stable return. Along this spectrum, you can opt for a combination of conservative and risky SMSF investment strategy options, in much the same way that you might structure your home loan to be on a partially fixed / partially variable interest rate.

Book an Appointment with Us Today

iCare Super can help you devise an investment strategy that works for you, whether you’re considering self managed super fund property investment or you want to invest your superannuation in shares, gold or any other items of value. To discuss your investment options with us, head to our contact us page to reach us in the way that best suits you.

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