SMSF investors more active, diversified than retail

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New research has found that SMSF 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 SMSFs hold an average of 14 securities in their portfolio, compared to seven for the average retail equities investors.

“SMSF 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.

SMSFs 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%.