Asset Diversification Strategies for SMSFs

Reach Alternative Investments logo
Reach Alternative Investments
November 2, 2023
min read

Asset Diversification Strategies for SMSFs

Self-managed super funds (SMSFs) provide a substantial degree of control over investments. One paramount avenue of exerting this control is effective diversification. Diversification mitigates risk and enhances potential for returns by spreading investments across various asset classes. A novel avenue for diversification is exploring investment in global private equity funds. These offer exciting growth opportunities and a doorway to the world's best funds right from Australia. Let’s delve deeper into understanding asset diversification strategies for your SMSF portfolio.

What is Asset Diversification?

Asset diversification is about spreading investments across different types of assets to reduce risk. Fruitfully employed, it prevents your SMSF from being excessively reliant on a particular asset class or investment. A diversified portfolio includes a blend of cash, property, shares, fixed interest, and even global private equity funds. Diversification may offer a buffer against potential failing markets while still leaving room for achieving substantial returns.

Why is Diversification Important for SMSFs?

Diversification is essential for mitigating investment risks. Investing in a single asset has higher potential risk; if there's a market downturn, the entire portfolio could suffer. Diversification aims to provide a safety net against market turbulence. It allows return potential on some investments even when others perform poorly. For SMSFs, diversification assists in ensuring more stable returns and safeguarding your retirement savings against volatile market conditions.

How Can SMSFs Access Global Private Equity Funds?

Historically, access to global private equity funds has been confined to large institutional investors. However, Reach Alternative Investments is changing this narrative. Now, Australian wholesale, sophisticated, or professional investors can access top-tier private equity funds through Reach Alts. This innovative investment portal enables SMSF trustees to invest a minimum of AU$15,000 into a fund, opening the door to high-performing global funds for a more opportune diversification strategy.

What Role do Global Private Equity Funds Play in SMSF Diversification?

Private equity has historically demonstrated a high degree of resistance to traditional market turbulence. Therefore, incorporating private equity into an SMSF provides diversification from conventional asset classes. It also provides exposure to the global market, further enhancing diversification. Investing through Reach Alternative Investments offers access to well-researched, top-tier global private equity funds. This allows for lucrative returns from high-growth companies that may not be accessible through public markets.

Are There Legal Structures in Place for SMSFs Investing in Private Equity?

Yes, Reach Alternative Investments is compliant with Australian regulations when it curates opportunities for investors. They create a corresponding legal structure in Australia, ensuring a professional and compliant trust for investments in foreign private equity funds. All legal documentations and tax reporting can be managed via the investor portal. Thus, SMSF trustees can expand their portfolios prudently and responsibly.

What kind of Support does Reach Alts Offer for SMSFs Investing in Private Equity?

Reach Alts offers comprehensive support for SMSF trustees proceeding through their private equity investment journey. Its user-friendly portal provides detailed insights into each fund, with research backing every investment opportunity offered. Investors can seamlessly engage with the Reach Alts investment team to decide their investment options, sign all requisite documents and manage their portfolio efficiently - all within one accessible platform.


Diversification is a key aspect of a dynamic SMSF investment strategy. Exploring global private equity funds through Reach Alternative Investments offers SMSFs a path to invest like the world's biggest institutions and endowments. With its transparent processes and dedicated support, this platform enables wholesale investors to invest in global private markets and build their superannuation in a balance of growth and stability.

Investing in private equity has never been easier.

From weeks to minutes.  Registration only takes a few minutes & is commitment free.

Want to view our fund
opportunities and details?