In this guide
As with a lot of things in life, knowing you should do something doesn’t necessarily mean you will get around to doing it.
Most SMSF trustees know they should diversify their investments, but not everyone does it – particularly if their fund’s balance is still relatively low.
Having most of your fund’s investment portfolio sitting in a single asset or asset class – whether it’s cash, term deposits or property – is an easy path to take, but it’s not always smart, or even in keeping with the SMSF regulations.
In fact, it’s the opposite approach to that taken by successful institutional investors, with research showing a concentration of assets can reduce the investment performance of your SMSF by as much as 3% a year.
Why diversify?
Join SuperGuide to continue
Independent expert guidance for your SMSF
Master SMSF specific strategies so you can capitalise on the unique opportunities available to SMSFs
- Comprehensive super and SMSF rules and strategies in plain language
- Admin and compliance made easier with step-by-step checklists
- Insights on the most popular SMSF investments
- Regular updates and webinars to keep you informed and compliant
Leave a Reply
You must be logged in to post a comment.