5 Investment Options for Self Managed Super Fund (SMSF) Owners

For Australians looking to take control of their retirement savings, a Self Managed Super Fund (SMSF) offers a wider range of investment options than traditional Super funds. This flexibility allows you to tailor your investment strategy to your specific goals and risk tolerance. 

Understanding Self Managed Super Fund

SMSF is a retirement savings account that gives you more direct control over how your Superannuation is invested. Unlike regular Super funds run by institutions, SMSF is self-managed, meaning you and a maximum of five other people decide where to invest your money. 

While SMSF offers a wider investment selection, there are still established regulatory guidelines on what your Super can be invested in. This means careful and thoughtful choices are crucial for your SMSF investment strategy. 

Investment Options for your Self Managed Super Fund

Ready to take charge of your Super? Or are you already an SMSF owner? Here are five investment options to consider: 

Australian and International Shares

Investing in shares allows you to own a piece of a company and potentially benefit from capital growth and dividends. You can choose Australian shares for stability or diversify internationally to tap into different markets. 

Exchange-Traded Funds (ETFs)

ETFs are a basket of securities that track a particular market index or sector. They offer instant diversification and lower fees compared to actively managed funds. Look for Halal ETFs that comply with Islamic investment principles like ASX: ISLM, ASX: HJZP, ASX: SKUK, ASX: HJHI, and ASX: HHIF from Hejaz. 

Commodities

Commodities, such as gold or silver, can provide a hedge against inflation and market volatility. However, they can be quite volatile, so careful research is crucial. 

Businesses

You can invest in a business directly through your Self Managed Super Fund. This offers potentially high returns but also carries significant risk and requires in-depth knowledge of the business itself. 

Property

Property investment is a popular choice for SMSF owners because it offers the potential for steady rental income and long-term capital growth. However, high property prices can be a significant hurdle. This challenge is even more pronounced for Australian Muslims, as traditional loan structures with interest payments are prohibited under Islamic finance principles (usury). 

Before investing in property, SMSF trustees must ensure they understand that any borrowing for property must be structured through a Limited Recourse Borrowing Arrangement (LRBA) and a bare trust to remain compliant. 

Invest in Property with Hejaz Gold SMSF Finance

To help SMSF owners expand their investment portfolios into the property market, Hejaz has launched a product: Hejaz Gold SMSF Finance. 

Hejaz Gold SMSF Finance provides SMSF trustees with property investment financing through a Limited Recourse Borrowing Arrangement (LRBA). The asset is held in a bare trust until the loan is repaid, ensuring compliance with ATO regulations. Structured under Musharaka (Joint Venture), it aligns with Islamic finance and Superannuation laws. This product utilises the Islamic financing method of Musharaka (Joint Venture), ensuring adherence to both Islamic finance principles and Superannuation laws. 

Here are some of the benefits you can experience when choosing Hejaz Gold SMSF Finance: 

• Property Ownership: Leveraging Islamic finance to acquire physical property inside your Super.
• Tax Management: Assets held within Super generally attract more favourable tax rates.
• Diversifying SMSF Assets: Explore more investment opportunities within your SMSF.

Ready to unlock the true potential of your Self Managed Super Fund and achieve your retirement goals? Contact us today at 1300-043-529 or super@hejazfs.com.au to apply and learn more about Hejaz Gold SMSF Finance. 

Disclaimer:
The information provided is for general informational purposes only and does not constitute financial, tax, or legal advice. While we strive to ensure accuracy, we do not guarantee the completeness or reliability of the information. Before making any financial or investment decisions, we recommend seeking independent professional advice tailored to your specific circumstances. Any investment carries risks, and past performance is not indicative of future results. We are not responsible for any losses or damages resulting from reliance on this information.