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
Strategy: Static Allocation
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
Use the Strategy Selector above to map effort to a strategy and default weights. When you are logged in, use the portfolio monitor to compare current vs target weights and list trades to return to plan.
The Economic Indicators section in Academy 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.