Every Self Managed Super Fund has to have an Investment Strategy and it must be reviewed regularly.

You need to prepare and implement an investment strategy for your fund, and review it regularly. The strategy needs to reflect the purpose and circumstances of your fund and consider the following:

  • investing in a way to maximise member returns taking into account the risk associated with the investment
  • diversification and the benefits of investing across a number of asset classes (for example, shares, property and fixed deposit) in a long-term investment strategy the ability of your fund to pay benefits as members retire and pay other costs incurred by your fund
  • whether to hold insurance cover for one or more members of your SMSF
  • the circumstances of members (for example, age, income level, employment pattern and retirement needs).

The investment strategy should set out your investment objectives and detail the investment methods you will adopt to achieve these objectives. It must be reviewed regularly and whenever there is a change to the fund – for example, a new member joins.

You need to make sure all investment decisions are made according to the investment strategy of your fund. If in any doubt, you should seek independent investment advice from a suitably qualified professional.

Source: ATO’s Running a self-managed super fund booklet