investors outstrip retail investors in trades and diversification.
The analysis by CommSec found SMSF
investors trade twice as often and hold more diverse portfolios than retail investors. The data found SMSF
s hold an average of 14 securities in their portfolio, compared to seven for the average retail equities investors.
accounts tend to be far more diversified than those of retail investors, recognising that diversification is an important part of reducing risks and managing a robust portfolio over the long-term,” Commonwealth Bank head of SMSF
customers Marcus Evans said.
s also hold equities across a broad range of industries, representing more than 20 sectors. Bank holdings are the most popular, representing more than 30% of SMSF
holdings. This is followed by materials at 10%, telecommunications services at 7.3%, diversified financials at 5.8% and food and staples at 5.7%.