Having access to a broader range of investments is a common reason for starting an SMSF. Through a self-managed super fund, you can not only invest in shares, term deposits, managed funds and property, you can also hold alternative assets, such as antiques and artwork.
Shares
You may want to set up an SMSF so you can choose your own shares. But, unless you have a lot of money to invest, you are unlikely to be as diversified as a fund manager, who has the advantage of using pooled funds to buy a broad range of shares.
Some APRA-regulated funds now allow you to choose your own shares.
Property
Some people use their SMSF to invest in property. For information on the rules of property investment within super and the costs involved, go to our SMSFs and property webpage.
Collectibles
SMSFs can hold collectibles such as artwork, jewellery, antiques, coins, stamps, vintage cars and wine; however, there are very strict rules around holding these assets in your SMSF.
The assets must be insured and they cannot provide a present‑day benefit. This means that artwork cannot be displayed in your home or business, you cannot drive the vintage car, you cannot wear the jewellery or drink the wine.
For more information, see the ATOs webpage on collectibles and personal use assets.
Cryptocurrencies
Some SMSF trustees have taken an interest in investing in cryptocurrencies such as Bitcoin, Ethereum, Litecoin and Ripple. While SMSFs are not prohibited from investing in cryptocurrencies, as a trustee, you need to consider:
- the nature of cryptocurrencies - For a detailed explanation on what they are and how they work, see our webpage on cryptocurrencies
- cryptocurrency risks - Cryptocurrencies carry additional risks, including fewer safeguards, values that can fluctuate significantly over a short period of time and the risk that your money could be stolen with little or no recourse
- SMSF regulatory requirements - There are superannuation regulatory requirements that apply to investments made by your SMSF. For more information about SMSFs investing in cryptocurrencies, visit the ATO website.
Be wary of services offering to establish an SMSF for you in order to gain exposure to cryptocurrencies. Not only does operating an SMSF involve significant time, skills and responsibility, you may also be putting your retirement savings at risk.
You should seek independent advice from a licensed financial adviser before undertaking any new type of investment in your fund.
How SMSF trustees invest
SMSF trustees prefer different assets from those of APRA-regulated super funds, which may impact returns. SMSFs tend to invest more in cash, property and alternative assets while APRA-regulated funds are usually better diversified.