The SMSF investment strategy is an important document for self-managed super fund trustees. It provides a framework for how the fund's assets may be invested to help support members' retirement objectives.
For self-directed trustees, having a clear investment strategy can help guide decision-making and ensure investments remain aligned with the fund's goals, risk profile and member circumstances. This article explains what an SMSF investment strategy is, why it matters, and the investment options that may be considered.
There is no single standard format for an SMSF investment strategy. The strategy should reflect the circumstances of the fund and its members. While a licensed professional can help with preparation or advice, the trustees are ultimately responsible for managing the investments in the best interests of the SMSF members and in compliance with applicable laws.
For more information, the ATO provides further guidance on their website.
SMSFs can be complex to establish and manage, and compliance requirements may vary depending on a fund's individual circumstances. The information below provides a general overview only and you should seek professional financial, tax or legal advice before making decisions relating to an SMSF.
Key takeaways
SMSFs are required to have in place an investment strategy document which outlines how the fund’s assets should be invested, held, and realised. The strategy should cover investment objectives, risk tolerance, diversification, liquidity, and insurance.
Investment strategies should generally be reviewed regularly, particularly following significant changes to the fund's circumstances, such as changes in membership or major changes in market conditions.
CMC Invest provides SMSF trustees access to a range of investment types such as shares, ETFs, options and cryptocurrency.
What is an SMSF investment strategy
An SMSF investment strategy can help trustees document how the fund’s investments are intended to support members’ retirement objectives. The strategy should be formulated and regularly reviewed based on the fund’s circumstances, legal obligations and member needs.
Once an SMSF investment strategy has been formulated, trustees may use CMC Invest to access and manage a range of investment options, including Australian shares, international shares and ETFs, depending on what is appropriate for their fund.
Before making investment decisions, SMSF trustees should consider their fund’s trust deed, investment strategy, compliance legal obligations, and seek professional advice where appropriate.
Asset classes available through CMC Invest
The following asset classes are available with CMC Invest:
Domestic shares: Explore ASX shares or learn more about how share investing works.
International shares: Check out international shares or read our guide on how to buy international shares.
Exchange-traded funds: Dive into ETFs or see our guide on how to invest in ETFs.
Options: Eligible SMSF clients with non-margin-lender-linked accounts can trade ASX exchange-traded options, subject to completing our options knowledge quizzes. Options may be used for income generation, hedging or speculation. Beginners can read our guide on options trading.
Cryptocurrencies: Some SMSFs may hold cryptocurrencies such as Bitcoin or Ethereum. These are high-risk, speculative investments subject to significant price volatility and regulatory changes, trustees should ensure the SMSF’s trust deed and investment strategy support this asset class before proceeding.
Conclusion
Having a documented SMSF investment strategy may help self-directed trustees maintain a structured approach to their fund. In addition to being a legal requirement, a strategy can serve as a reference point for investment decisions - though it does not guarantee outcomes, and trustees should seek professional advice where appropriate.
Start looking at investment opportunities for your SMSF with CMC Invest today.
Disclaimer: CMC Markets is an execution-only service provider. The article (whether or not it states any opinions) is for general information and education purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment, tax or other advice on which reliance should be placed and is warranted to be complete, accurate, or timely. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. CMC Markets does not endorse or make any representation as to the accuracy or correctness of any third party content referred to in the article.
Investing in cryptocurrencies carries significant risks and is not suitable for all investors. You may lose all of your invested capital. Consequently, you should consider the information in light of your objectives, financial situation and needs and do your own research. It’s important for you to consider the CMC Markets Stockbroking Limited Annexure C (Digital Assets Terms of Service) and other associated disclosure documents on the CMC Markets Invest website before you decide whether or not to acquire any cryptocurrencies. Please also note that you are not currently able to send cryptocurrencies to or from your trading account, or use cryptocurrencies purchased on the CMC Invest platform to pay for goods or services.
As at the date this article is published, the cryptocurrency services provided by CMC Markets Stockbroking Limited are not regulated under Chapter 7 of the Corporations Act 2001 (Cth), and clients are not entitled to the same regulatory protections which apply to regulated financial products and services. Client cryptocurrencies are held by a sub-custodian.
