Investment Strategies
By the end of this guide, you can pick a strategy that matches your effort and risk settings, choose suitable asset types, and set a simple target allocation you can maintain over time.
There are many strategies, but most fit into a handful of patterns. Pick the pattern that fits your available time and risk tolerance.
Strategy Comparison
| Strategy Category | Description | Effort | Requires Assets with: | ||
|---|---|---|---|---|---|
| Liquidity | Volatility | Speculation | |||
| Static Allocation | Pre-set weights; buy/hold; rebalance on schedule | Very Low | Low | Any | Low |
| Fixed Portfolio | Hand-picked assets/ETFs; rare changes | Low | Low | Any | Low–Mod |
| Tactical Allocation | Adjust weights vs. simple economic signals | Moderate | Moderate | Any | Mod |
| Value Investing | Select undervalued assets; longer holding periods | High | Moderate | Any | Mod |
| Swing Trading | Multi-day/weekly momentum/mean-reversion trades | Very High | High | High | High |
| Day Trading | Intraday entries/exits | Extreme | High | Very High | Very High |
Key Terms:
- Effort: Time investment required and complexity to implement the strategy each month.
- Liquidity: How quickly the asset can be converted into cash without value loss.
- Volatility: The price variations that happen on an hourly or daily basis. If you're day trading you need volatility so you can buy low and sell high.
- Speculation: The price variation that happens differing to the fundamental valuation of an asset.
- Risk: The price variation that happens on a monthly or yearly basis. Indicates how much value could be lost in a year.
- Return: Historical long-term average growth and income return on investment of the asset class.
Decision Flow
Pick a Strategy
Select a strategy that meets the effort you are willing to put in.
Analyse & Select Assets
Based on your risk & return requirements.
Decide Portfolio
Set target weights + leverage (if any).
Sell Assets
If rebalancing, determine what to sell.
Buy Assets
Buy to reach target weights.
Strategy Loops
Important Warnings
- Less is best. Most professional funds do not beat their benchmarks consistently; odds are you won't either. Simplicity + discipline usually outperform tinkering.
- Past performance isn't predictive. Markets cycle; what worked recently may lag next.
Strategy Selector
Recommended Portfolio
Theory
A Static Allocation is a low-effort baseline: pick global equity + bonds + property, set weights, [Ref: Rebalance] on a schedule or threshold. Fixed Portfolio is curated buy-and-hold with very infrequent changes (thesis-driven). Tactical Allocation tilts weights using a small set of [Ref: Economic Indicator] with tight rules to avoid over-trading.
Higher [Ref: Leverage] raises both expected return and [Ref: Drawdown] risk. Keep [Ref: Liquidity] high if you rebalance or might need cash. Borrowing cost ≈ [Ref: RBA Cash Rate] + 2%.
How to do it with Self Managed
The Strategy Selector maps Effort → Strategy and pre-loads default weights. Use the Portfolio Monitor to compare current vs. target weights and list trades to return to plan.
The Economic Indicators panel supports Tactical tilts with consistent, rule-based signals for allocation adjustments.
FAQ
Yes—plan a transition (tax, spreads, timing) and document the rule. Most changes can be gradual.
For Static: annually or when a weight breaches ±20% of target. For Tactical: only when your indicators signal a change.
No. Start at 0%; add later only if your cashflow can handle higher rates and drawdowns.
REITs are listed and more liquid; direct property is concentrated and illiquid. Both have similar return profiles.
Use the Static Allocation defaults and automate contributions. Set up automatic rebalancing once per year.