Part IV
Investing Your DIY Super Money
Five Must-Dos When Drafting a SMSF Investment Strategy
Return: As SMSF trustee, when drafting and regularly reviewing your SMSF’s investment strategy, you need to consider the likely return from an investment, and whether such an investment is consistent with your SMSF’s investment objectives.
Risk: You can’t focus solely on the likely return of an investment —your fund’s investment strategy must require you to consider the risk involved in making an investment.
Diversification: You must consider whether your fund assets need to be diversified across a spread of asset classes, such as cash, shares and property, and whether your fund assets also need to be diversified across a spread of specific investments.
Cashflow needs: You need to ensure that the cashflow needs of your SMSF are not compromised when deciding on your overall investment strategy. Typical cash flow requirements of a SMSF include paying fund expenses and super taxes, and if ...
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