Chapter 6: Investment rules
Now that you know how to construct your SMSF’s investment portfolio, you have to set about building and managing the portfolio. In doing so, be aware that there are a number of rules that will guide, and sometimes limit, your investment decisions. These rules are regulated by the ATO and are designed to ensure the members of your SMSF aren’t exposed to undue risk. They also safeguard SMSF assets for the sole purpose of providing retirement benefits for members.
Prepare a written investment strategy
Your SMSF must have a formal investment strategy. Together with your fellow trustees, you must prepare a written strategy and review it regularly to make sure it remains appropriate.
Your fund’s strategy must reflect ...