Self-Managed Super Funds


Investment decisions and rules

Investment choices

An SMSF can choose to invest in any asset that the trustees think appropriate. Trustees have a great deal of freedom to select investments that they think will suit the needs of the fund and its members. But there are some specific restrictions in legislation. Before making any investment Trustees need to ensure that: 

  • It is not prohibited by the trust deed
  • It fits within the fund’s documented investment strategy
  • It will meet the sole purpose test, and
  • It does not breach specific SIS rules.

Tip

An SMSFs investments are for the sole purpose of providing retirement or death benefit to members or member’s beneficiaries. Therefore, there can’t be any pre-retirement benefits provided to members or related parties (such as letting members use assets of the fund, e.g. residential property)