SMSF Investment Strategy

Every self-managed super fund is legally required to have a documented investment strategy, and the ATO actively checks that trustees are following it – not just holding it on file. A One Accountants works with SMSF trustees across Melbourne to prepare, review and update investment strategies that genuinely reflect the fund’s circumstances, not a generic template that doesn’t hold up under scrutiny.

What an SMSF Investment Strategy Must Cover

Under superannuation law, your investment strategy needs to set out how the fund’s assets will help meet each member’s retirement goals, taking into account:

• Risk and expected return of the fund’s investments
• Diversification (or the reasons for a lack of diversification, such as a fund concentrated in property)
• The fund’s ability to pay benefits and meet ongoing expenses (liquidity)
• The likely cash flow needs of the fund, including insurance cover for members

The strategy needs to be reviewed regularly – at least annually, and whenever your circumstances or the fund’s asset mix change significantly.

SMSF Investment Strategy Rules

The rules come from the Superannuation Industry (Supervision) Act, which requires trustees to formulate, regularly review, and give effect to an investment strategy for the whole fund. A common compliance issue the ATO flags is a fund heavily concentrated in one asset (often property) with no documented reasoning for the lack of diversification – this alone won’t get you in trouble, but not being able to show you’ve actively considered it will.

SMSF Investment Strategy Cost

Costs depend on whether you need a strategy prepared from scratch, an annual review, or an update following a major change (such as purchasing a property within the fund). We provide a fixed quote upfront – get in touch and we’ll confirm pricing based on your fund’s situation.

Frequently Asked Questions

Do I really need a written investment strategy for my SMSF?

Yes. It’s a legal requirement for every SMSF, and it’s one of the first things checked in an ATO review or your fund’s annual audit.

How often should the investment strategy be reviewed?

At least once a year, and immediately after any significant change – a new member joining, a large asset purchase, or a shift in a member’s circumstances close to retirement.

Can my SMSF hold just one asset, like a single investment property?

It can, but your investment strategy needs to explicitly address the lack of diversification and show the trustees have genuinely considered the risk, rather than simply stating the fund holds one property.

What happens if my SMSF doesn’t have a compliant investment strategy?

It’s a breach of the SIS Act, which auditors are required to report to the ATO. Penalties can apply, and in more serious cases the ATO can take stronger compliance action against the fund.

Can you prepare or update my investment strategy for me?

Yes – we prepare and review investment strategies tailored to your fund’s actual asset mix and member circumstances, rather than a generic template.

See also: Online SMSF Tax Return, SMSF Register, and SMSF Contribution Caps.

Get Your SMSF Investment Strategy Sorted

Call 1300 A1 AONE (1300 212 663) or message us on WhatsApp and we’ll help you prepare or review your fund’s investment strategy.