As an SMSF trustee you’re required by law to regularly review your investment strategy to make sure the initial goals and potential outcomes remain relevant and achievable.

When looking at your investment strategy, take into account changing economic environments globally so you can adjust, adapt and explore investment opportunities that may arise. A good investment strategy that is disciplined and focused on the long-term is essential. Here's more on that.

Diversify to minimise risk

Diversification is an important consideration for an SMSF trustee when formulating the fund’s investment strategy.  Diversification aims to spread your SMSF’s investment risk so that if one asset performs below expectations, the performance of other assets can offset this and keep your fund on track to meet its investment objectives. 

Some tips on how to diversify your portfolio

Invest to generate income

There are different ways to generate income through investments including cash, fixed interest, property and shares.

Income generating assets can be an important part of your investment strategy during accumulation and retirement phase. Each come with their own related risks though, which you should be aware of before investing.

Take a closer look at potential risks and benefits

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Include international investments

Investing internationally can offer a number of benefits to your SMSF portfolio, including gaining exposure to different drivers of growth and spreading risk across markets.

Diversifying across different geographic markets can also help to lower the risk in your portfolio. For example, if the local economy and markets suffer a downturn,  other global markets may be performing better at those times.

Read how to invest internationally

Invest in property

Property is often a popular choice for Australian investors but for SMSFs investing in real property, it's important to be aware of a number of rules governing how a property can be used.

There are regulations in place depending on whether you’re investing in residential or commercial properties. And given the risks involved, there are also strict rules in place around how you may borrow to invest in property, which can only be done through a limited recourse borrowing arrangement (LRBA).

Discover more about property investment

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Plan for retirement

Figuring out how much you’ll need when you retire requires planning and thought.  And the SMSF investment strategy that suited you in the accumulation phase may not be appropriate as you approach retirement or enter the retirement phase.

Under superannuation law you’re legally required to prepare, implement and regularly review an investment strategy that has regard to the whole circumstances of your fund.

Here’s how to prepare for the retirement phase

Things you should know

This information is prepared by Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945.

The information contained may include general advice but does not take into account the investment objectives, financial situation and needs of any particular individual or trustee of a self-managed super fund. You should assess with the help of legal, financial and taxation advice, whether the information is appropriate in light of your own circumstances before acting on it.