Adapting Your Investment Strategy to Interest Rate Fluctuations - Part 2
3 Investment Tips for SMSF Holders in a High Interest Rate Environment
If you have a high superannuation balance, adapting to interest rate fluctuations may be important in protecting and growing your wealth. Here are three strategies:
Diversify Across Asset Classes: Ensure your super is diversified, for example, across equities, fixed income, and alternative investments. Different asset classes react differently to interest rate changes, helping to balance your portfolio's risk and return.
Focus on Inflation-Linked Assets: Rising interest rates often accompany higher inflation. You might want to consider including inflation-linked bonds in your super portfolio to protect against the eroding effects of inflation on your purchasing power.
Review Your Super Fund Options: Regularly review the performance and fees of your super fund. It's a good idea to look for funds that offer competitive returns and are well-positioned to handle interest rate changes.
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Disclaimer: This information is general in nature and does not take into account your personal financial circumstances, needs or objectives. It does not represent financial product advice. You should always seek independent legal and financial advice before making a decision in relation to a financial product. You should consider your own circumstances, needs and financial objectives before making a decision. Before acting on any information you should consider whether it is appropriate for your situation and seek independent financial advice if necessary.