Creating a solid investment strategy for your self-managed superannuation fund (SMSF) will not only help you manage your investments better, but it could also help you justify and account for your decisions if an auditor or the Australian Taxation Office (ATO) ever question your investments.

It’s important to have an investment strategy that fits the retirement goals and needs of all the members of the fund. As a result, you and any other trustee will need to take into account:

• the level of risk that is appropriate;
• the level of diversification;
• the types of assets that can be held;
• the liquidity of the assets;
• the level of income that needs to be generated; and
• the ability of the fund to discharge its liabilities.

You can choose to write your own investment strategy, or sit down with a financial advisor or administrator and have them help you create one. Either way, your strategy should be filed with your SMSF’s documents.

To find out more about writing your own strategy, please read our section on Creating an investment strategy for your SMSF. Or for access to our sample investment strategy, sign up for a 21-day free trial of the Switzer Super Report, a newsletter and website dedicated to providing trustees with education, information and investment advice to grow their DIY super.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Anyone should, before acting, consider the appropriateness of the information in regards to their objectives, financial situation and needs and, if necessary, seek professional advice.