How To Create An SMSF Investment Strategy

Some of the things that you should consider in creating an SMSF strategy are:

Risks of your investments

If you’re investing in cryptocurrency, note that it might be extremely risky compared to leaving it in cash, which also has its risks with inflation. You need to basically have a common sense and documentation of the risks and why you’ve chosen that for each of the members. 

Diversification of investments and benchmarks for classes of assets

You need to set in your investment strategy and you may target 60-70% of your fund that you want in real property whether it’s residential or commercial. You may want 40% in cash because you want a bit of liquidity, so you have to document what you’re aiming for and keep it up to date. Make sure the range that you are aiming for is what reality looks like. 

If your SMSF holds property, and your home or property has increased in price and in value, then you may have a larger portion of your funding property and it may be on the upwards range of your investment strategy. 

It is important to make sure that your investment strategy is kept up to date with the market values of your fund. 

Document your intended return on investment

Document your intended return on investment and document your overall fund targeting the cash rate plus 5% or an overall return of 20% net of tax or whatever it is.


If you want to explore Borrowings in your fund, it is usually with property.


It doesn’t mean you need to have insurance in your SMSF, but you do need to document what you’ve done with insurances. 


Liquidity needs to be documented as well. It’s just common sense.  There’s a bit of planning with liquidity and cash flow requirements. If you are in pension mode, you need to make an account for cash to pay out pensions. It’s not set and forget so we need to review that each year.

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