An investment strategy sets out the investment objectives and types of investments the trustees plan to invest in a Self Managed Superannuation Fund (SMSF). It is required by law to have a documented investment strategy and regularly review it.
An investment strategy can be prepared by the trustees or they can seek professional advice from a Financial Planner. The Auditor of the SMSF will request a copy to ensure the trustee’s are meeting their obligations.
The written investment strategy should take into consideration;
- Diversification, investing in a range of investments and expected rate of return
- Members personal situation, age and risk tolerance
- Liquidity, how easily the fund can turn assets into cash
- The ability to pay expenses and benefits to members
- Insurance for all members
Reviewing the investment strategy on an annual basis is a good rule of thumb. If there is a change in circumstances or events the strategy should be updated accordingly. Examples of these factors can include, a change in members, change in member’s circumstances, change in investments and goals of the SMSF.
Should you require further information about SMSF investment strategies please contact Concise Super on 03 9838 3055.
This information is for general information only and does not constitute financial advice or take into account your personal needs, objectives and financial situation. Before making any decisions, we recommend you seek professional advice.
May 2018 ~ Kerrie Salvatore, Concise Super
© Concise Super 2018