Diversifying your SMSF portfolio

Rather than being limited to a predefined option, an SMSF can give you access to a broader, more diversified range of asset classes.

What is diversification?

Diversification means spreading your investments across different asset classes, industries and regions.

The goal is to reduce how much of any one investment or asset class can affect your overall portfolio.

While it doesn't eliminate investment risk or guarantee returns, it can help reduce concentration risk.

What can an SMSF invest in?

An SMSF can invest in a variety of assets, including:

• Australian shares and ETFs

• International shares and ETFs

• Property

• Managed funds

• Cash and term deposits

• Bonds

• Cryptocurrency

• Precious metals

• Other investments permitted under superannuation law

This gives trustees more room to build a portfolio that aligns with their investment strategy.

Why diversification matters

Different asset classes behave in their own way over time.

Shares, property, fixed income and cash don't perform the same way under similar market conditions.

Holding a mix of investments may help reduce the impact of market movements on your overall portfolio. It can also provide exposure to different sources of return.

Your SMSF investment strategy should cover how diversification has been considered.

Things to consider

Diversification is only one part of building a portfolio.

As an SMSF trustee, you should also consider:

• Your investment objectives

• Your risk tolerance

• Liquidity within the fund

• How long you plan to invest for

• Ongoing compliance requirements

Your strategy should reflect these factors and be reviewed regularly.

How Stake Super helps

Stake Super supports a broad range of asset classes while simplifying the admin that comes with running an SMSF.

For shares, ETFs, property and more, our team helps keep the admin moving, while you stay focused on your portfolio.

Build your SMSF with more support

Stake Super helps with setup, transfers, admin and ongoing compliance.

Get started today or speak to a Stake Super specialist.

This is not financial product advice, nor a recommendation that a self-managed super fund (‘SMSF’) may be suitable for you. Your personal circumstances have not been taken into account. SMSFs have different risks and features compared to traditional superannuation funds regulated by the Australian Prudential Regulation Authority (‘APRA’). Stake SMSF Pty Ltd, trading as Stake Super, is not licensed to provide financial product advice under the Corporations Act. This specifically applies to any financial products which are established if you instruct Stake Super to set up an SMSF. When you sign up to Stake Super, you are contracting with Stake SMSF Pty Ltd who will assist in the establishment and administration of an SMSF under a ‘no advice model’. You will also be referred to Stakeshop Pty Ltd to enable your trading account and bank account to be set up in order to use the Stake Website and/or App. For more information about SMSFs, see our SMSF Risks page.