What is an investment strategy?
An investment strategy is a written plan for how money is invested to meet a goal. It sets out the time frame, how much risk is acceptable, the mix of asset classes such as cash, bonds, property and shares, and how often the plan is reviewed. Personal investment advice is provided by MGB Financial Services Pty Ltd, not by Vermilion.
This page explains the issues an investment strategy deals with. It is general information and does not recommend any investment. For the wider picture of cash flow, structures and reviews, see wealth management.
General information. Reviewed 16 October 2026. Rules, caps and benefit tests change. Current figures are published by the Australian Taxation Office, Moneysmart and Services Australia.
Who is investment strategy for?
People who have savings outside super and are unsure whether they are invested for the right time frame. Professionals whose income has grown faster than their plan. Couples with different attitudes to risk who want one approach they both understand.
Under super law, SMSF trustees must have an investment strategy for the fund. That subject is covered on SMSF adviser Sydney.
What does the advice cover?
The issues an investment strategy deals with
ASIC's Moneysmart describes diversification as spreading money across different investments and asset classes so that a fall in one does not affect the whole portfolio as much. Asset allocation is the share of the total held in each class. Growth assets such as shares and property have historically moved more in value than defensive assets such as cash and bonds. Past movements are not a reliable indicator of future returns.
Tax, fees and access also matter. Money held in super is taxed differently from money held personally, and generally cannot be reached until a condition of release is met. A strategy that ignores where the money sits can look sensible on paper and work poorly in practice.
- The goal and the date the money may be needed.
- Tolerance for falls in value, and capacity to recover from them.
- Asset allocation and diversification across asset classes.
- Where investments are held: personally, jointly, in super or in another structure.
- Fees, tax and how often the strategy is reviewed.
What the process looks like
The goal
The first conversation with Vermilion is about what the money is for. No investment is discussed as a recommendation.
An introduction, if advice is wanted
Where an introduction is requested, the enquiry goes to MGB Financial Services, which explains the scope and the fees before personal advice is prepared.
A strategy in writing
Where personal advice is given, it is documented, with the assumptions and risks set out in writing before any decision is made.
Review on an agreed timetable
Markets and circumstances change. Reviews happen only where they are agreed with MGB Financial Services.
Limits
- Investments can fall in value, and investors can get back less than they put in.
- Diversification reduces some risks. It does not remove the risk of loss.
- Nothing on this page is a forecast, a return figure or a recommendation.
Questions
FAQs
What is the difference between an investment strategy and wealth management?
An investment strategy is the plan for how a particular pool of money is invested. Wealth management is broader and can also cover cash flow, structures, super, insurance and regular reviews. Both are subjects of advice provided by MGB Financial Services.
What is asset allocation?
Asset allocation is how an investment portfolio is divided between asset classes such as cash, fixed interest, property and shares. ASIC's Moneysmart explains that the mix affects both the expected ups and downs and the potential for growth over time.
Does an SMSF need an investment strategy?
Yes. The ATO requires SMSF trustees to prepare and regularly review an investment strategy for the fund, considering matters such as risk, diversification, liquidity and members' needs. This is general information, not advice about any fund.
Can Vermilion recommend an investment?
No. Vermilion does not hold a licence and does not recommend investments. Vermilion offers a free initial 15-minute chat and, where personal advice is wanted, an introduction to MGB Financial Services Pty Ltd.
The advice provider
Credentials of the practice
Financial advice is provided by MGB Financial Services Pty Ltd, Authorised Representative No. 428617 of Charter Financial Planning Limited. The practice gives personal advice only through people who are registered to do so. This website does not name an individual adviser.
You can search the ASIC Financial Advisers Register for the practice and for the people authorised to give personal advice. The Financial Services Guide sets out the services, how the practice is paid, and how to complain.
Complaints can be raised with MGB Financial Services, then with Charter Financial Planning using the details in the Financial Services Guide, and then with the Australian Financial Complaints Authority ( afca.org.au, 1800 931 678).
General advice warning
This website contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
