What’s your self managed super fund’s investment strategy?

By law, every self managed superannuation fund (SMSF) must have a investment strategy. What’s more, every investment an SMSF makes must align with the strategy.

So when it comes to deciding how to invest your retirement savings, it’s a key decision that involves every fund member. Your investment strategy needs to set out your fund's investment objectives, outline how you plan to achieve the objectives and provide a framework for making investment decisions.

What factors need to be considered?

Some of the things you need to consider when creating your investment strategy are:

  1. The personal circumstances of all the fund’s members—for example, their age and number of years to retirement, their risk tolerance and how much money each member will need at retirement, and when.
  2. The expected risks and returns of your investments.
  3. The benefits of diversifying your investments across a range of assets and asset classes.
  4. How easily your fund’s assets can be converted to cash to meet fund expenses as and when the need arises.
  5. The insurance needs of each fund member and whether it is appropriate to hold insurance cover inside the SMSF.
  6. The fund's ability to pay benefits to members when they retire.

Who can help with my fund’s investment strategy?

Establishing the right investment strategy for your fund is integral to the success of your SMSF. The good news is you don’t have to do it all yourself.

A financial adviser or the people at AMP can help you determine the right asset allocation and performance benchmarks for your fund. We can also help ensure your investments comply with super regulations, now and over time.

If you’d like some help, call us on 131 267 Monday to Friday from 8am to 8pm and Saturday and Sunday between 9am and 5pm AEST.

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© AMP Life Limited. This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, AMP does not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, AMP does not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.