Why you need the world in your SMSF

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Why you need the world in your SMSF

21 March 2018

Self-managed super fund (SMSF) trustees are generally aware of the benefits of diversification, but many trustees still focus their investment portfolios in just two assets: Australian shares and Australian property.

To an extent, this is understandable. Australian shares and property have been the beneficiary of an economy that hasn’t been in recession in 27 years, and these two assets have performed well on the back of Australia’s world record period of sustained growth.

Furthermore, it’s what a lot of SMSF trustees know. They invest in Australian bricks and mortar and companies they know and use such as banks and supermarkets. Investing internationally isn’t always easy, either.

However, too much “home bias” in your portfolio can have serious ramifications when the Australian economy pulls back or when usually stable businesses in Australia such as banks and supermarkets experience significant disruption (which we’re possibly seeing right now).

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