Chapter 5: How to construct your SMSF investment portfolio
When you are constructing your SMSF’s investment portfolio, don’t jump straight into selecting specific assets. You will first need to understand and analyse some central factors that will ultimately determine what type of investor you are. You can then pick your preferred investment methodology and asset allocation. Follow this five-step plan to ensure you consider all aspects of developing an appropriate investment strategy.
Step 1: determine what type of investor you are
Take some time and think about what type of investor you are. Start by working through the ideas outlined here. With this knowledge, you will have a good idea about your risk profile, which will help guide you through ...