SMSF Investment Strategy

A self managed super fund must only invest in accordance with the investment strategy that has been established by the trustees. The investment strategy may be changed by the adoption of a resolution, but the resolution must be adopted before the investment parameters are varied.

Although the investment strategy will govern the scope of the fund's investment activities, it is ultimately the Legislation and accompanying case law that will determine what particular investments are allowed and not allowed.

For instance, the investment strategy must be aimed at preserving a fund members future entitlements. Risky investment activities are not permitted, and so an investment strategy cannot contain a provision for risky activities. Similarly, a self managed super fund can not run a business.