How to build your SMSF investment strategy?

For Australian investors, developing an SMSF investment strategy requires careful consideration and planning to ensure it meets your financial goals and complies with regulations. Here’s a guide to help you get started:

Step 1: Assess key factors

1. Evaluate your risk tolerance in context of your personal circumstances

When considering investments within an SMSF, it’s important to assess the risks associated with different asset classes in the context of your fund’s overall investment strategy and the personal circumstances of its members. Factors such as age, time horizon, financial goals and risk tolerance can all influence how an SMSF is structured. For example, members who are earlier in their working lives and further from retirement may be better positioned to take on higher levels of risk, while those approaching or in retirement may prioritise stability and capital preservation.

Depending on these factors, some SMSFs may allocate more towards lower-risk assets such as term deposits or government bonds, which are generally considered more defensive in nature. Others may include a higher allocation to growth assets such as Australian or international shares, which can offer the potential for higher returns over the long term but may also experience greater volatility.

Any investment approach should be consistent with the SMSF’s documented investment strategy and regularly reviewed to ensure it remains appropriate for the members’ needs and objectives.

2. Analyse asset liquidity

Liquidity is an important consideration for SMSFs and should be assessed in line with members’ personal circumstances. It’s important to ensure the fund can access cash when required to meet expenses, tax obligations or payments. The ability of the fund to discharge its existing and prospective liabilities is one of the statutory factors that the ATO requires to be addressed within your investment strategy. Where a fund holds a significant proportion of illiquid assets (such as directly held property), trustees should ensure that alternative sources of funds remain available to meet ongoing payment obligations. Assets such as cash and ETFs listed on the Australian Securities Exchange are generally more liquid, and some SMSFs may maintain an allocation to these to support flexibility and short-term requirements. As members approach or enter the retirement phase, liquidity requirements typically increase, and the strategy should be adjusted accordingly.

3. Consider your long-term retirement goals

Lastly, ensure that your strategy supports your long-term retirement goals and aligns with your overall investment objectives.

Step 2: Set clear investment objectives

According to the key factors mentioned above, you are able to set specific, measurable objectives for your investments that reflect your retirement goals. Note that your investment strategy must be a documented, written strategy — it cannot be a verbal understanding. It is better for you to review these objectives annually to ensure they remain relevant and adjust them as needed to accommodate changes in the market or your personal circumstances.

Step 3: Diversify your portfolio

Don't put all your eggs in one basket. Instead, allocate your funds across different asset classes for a more balanced portfolio. ETFs provide inherent diversification and relatively high liquidity, making them an attractive option for SMSF to allocate capital across various asset classes. Even if you currently intend to invest in only a single asset class (such as cash), it is advisable to incorporate a broader range of investment options within your strategy. This ensures that when market opportunities arise, you are able to adjust your portfolio allocation without the need to amend the strategy itself.

Step 4: Ensure compliance

SMSFs are required to have an annual independent audit. The Auditor will review the investments by the Trustees to ensure they are consistent with the investment strategy.

Adhering to superannuation laws is crucial, as you are ultimately responsible for managing your SMSF. Familiarize yourself with the Superannuation Industry (Supervision) Act (SIS Act) and ensure that your investment strategy complies with all legal requirements.

How to start SMSF investing with moomoo?

If you don't have an SMSF account:

To provide comprehensive SMSF support, we partner with Rivkin, a trusted Local-based SMSF specialist with more than 40 years of industry experience.

1. Trusted local expertise

Partner with local SMSF specialists with more than 40 years of experience helping Australian manage their investments.

2. Streamlined all-in-one setup

It's all covered in one simple procress, from setting up a trust to opening your moomoo trading account.

3. Competitive pricing

Exclusive SMSF pricing for moomoo clients, whether you're setting up a new SMSF or need ongoing support for an existing one. Annual service fees from $950.*

Open an SMSF account->

Automate your SMSF data flow

Moomoo has partnered with Class to enable an automated data feed for moomoo SMSF accounts. With your consent, your transaction and portfolio data can be securely shared with the Class software widely used by your accountant or SMSF administrator, helping reduce manual data entry and improve reporting efficiency.

If you already have an SMSF account:

To open an SMSF trading account, you are required to provide the following information: the full name of the SMSF trust, Australian Business Number (ABN), Tax File Number (TFN), and identity verification documents. For more details, please visit: How to open and manage an SMSF trading account with moomoo

Once you have prepared the above documents, you can open your moomoo SMSF Account via the following 3 methods:

Option 1: Open directly in 4 simple steps by clicking the link:

• New users:opening an moomoo SMSF Account.

• Existing moomoo users:add an moomoo SMSF Account.

*You can also contact support anytime through the moomoo app.

Option 2: Book a 1-on-1 consultation

Book a 1-on-1 consultation with moomoo’s SMSF specialist team, where you can learn about moomoo SMSF account opening procedures and relevant investment strategies.

Option 3: Visit team moomoo in personOpen your moomoo SMSF account at our Chatswood store with in-person support.

Address: Shop 66, 427–441 Victoria Avenue, Chatswood NSW

please include disclaimer when refering the above pricing $950.

*Fees are Inclusive of GST. Moomoo AU may receive fees from the above third-party SMSF administrators for referrals that result in the purchase of their services. Moomoo AU does not provide any advice or recommendations with regard to the providers' services or the suitability of establishing an SMSF in general. Please seek professional advice from a qualified financial adviser and/or accountant where necessary.

Moomoo Securities Australia Ltd (AFSL 224663) provides execution-only dealing services. SMSF establishment, administration and related advice services are provided by Rivkin Wealth Advisors Pty Ltd (AFSL 551201). Moomoo does not provide superannuation, tax or personal financial advice. Consider whether these services are appropriate for you and read the relevant terms and disclosures before proceeding.