What can my SMSF invest in?

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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 look at this ATO video 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 including farm land
• Cash, term deposits and other fixed interest securities
• Collectables such as artwork (have a read of the ATO website about what assets are considered collectables and what can and can’t be done: Collectables and personal use assets | Australian Taxation Office (ato.gov.au)
• Unlisted shares and trusts (as long as they are not related companies or trusts)
• Cryptocurrencies

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. ASIC has a guide about risk and superannuation investments that you may find useful: Super investment options – Moneysmart.gov.au. 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 more here.

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 contact us here.