When it comes to self-managed super funds I believe most investors will have two main goals. One is to create a source of income in retirement and the other is to avoid capital losses.
Whilst this is easier said than done, I believe that investors give themselves the best possible chance of success if they invest wisely.
Investing in high quality companies that are leaders in their fields and have a history of generating wealth for their shareholders is a good starting point.
Here are three shares which I believe could make good additions to a self-managed super fund:
Flight Centre Travel Group Ltd (ASX: FLT)
I expect Flight Centre shares to provide investors with both growth and income over the next few years. Whilst the company is going through a rough patch at the moment, I believe its quality management team will be able to navigate the weak trading conditions and get the company back on the right path in the near future. At present its shares provide a trailing fully franked 5.1% dividend. With its half-year results just around the corner, investors might want to consider holding out until they are announced. There's a reasonable chance they will disappoint, leading to better entry points for patient investors.
Suncorp Group Ltd (ASX: SUN)
In FY 2017 Suncorp is expected to provide investors with a fully franked 5.3% dividend according to CommSec. Not only is this the biggest yield available to investors in the insurance industry, but its shares are the cheapest amongst its peers as well at 14x estimated FY 2017 earnings. With a new operating model in place, I expect Suncorp to turn around its faltering performance and provide strong long-term gains for investors.
WAM Capital Limited (ASX: WAM)
Last year was an outstanding one for this impressive investment company. Thanks to some astute investments WAM's portfolio grew by a massive 21.6%. This is no fluke either. The fund has outperformed the S&P/ASX All Ordinaries Accumulation Index by an average of 8.1% each year since 1999. WAM is one of the more generous dividend payers on the market and currently provides a trailing fully franked 6% dividend. In the last five years the company has increased its dividend by 8.3% per annum and I expect it to be no different in the year ahead.
