Wanting to control your investments is often a key reason for considering an SMSF. SMSF’s offer a broader choice of investment options which are not usually accessible in retail or industry super funds. Knowing what these are is important so you can consider the appropriateness of each asset for your own SMSF investment strategy.
Before we get started have a quick read of our blog regarding investment strategies to remind yourself why you must keep one and how your investment choices impact this document.
Assets that your SMSF can invest in:
• Listed shares both Australian and overseas
• Managed funds and listed unit trusts
• Direct property either residential or commercial (check out our blog on SMSF’s and property) including farm land
• Cash, term deposits and other fixed interest securities
• Collectables such as artwork (have a read of our blog about what assets are considered collectables and what can and can’t be done)
• Unlisted shares and trusts (as long as they are not related companies or trusts)
• Cryptocurrencies (check out our blog on this asset class to ensure you get it right)
There are additional investment categories such as in-house assets and loans however these are a bit more complex and we recommend seeking professional advice before making these investments.
Asset diversification is important to always consider. It is addressed in your investment strategy and should stay at the forefront of your mind when making decisions. Read our blog on Investment Diversification to find out more.
Some other important points to consider when making investments in your SMSF is the name in which you purchase those assets and how to value them at year end. Read our blog to find out the Importance of Separating your SMSF Assets.
There are so many options with SMSF’s when it comes to investing but making sure you know what you can and cannot do is imperative. If you would like further information please don’t hesitate to get in touch here.
This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.