Self-managed super fund (SMSF) trustees often ask themselves, “What is the right mix of investments for my SMSF?” It’s a very common question, and one that will need to consider individual preference and the time until retirement. The answer will not be the same for everyone, even for members within the same SMSF.
The ‘right’ mix will be based on things like tolerance to investment risk and various other factors, such as the cash flow needs of the SMSF and the investment mix of assets held by members outside of the SMSF. First and foremost, the mix of the investments within the SMSF must be in line with the SMSF’s investment strategy.
This is developed and reviewed by the trustees of the SMSF, and stipulates what types of assets the SMSF is allowed to invest in and over what timeframe.