When it comes to a self-managed super fund (SMSF), I would want investments that can stand the test of time. That means owning companies with lasting competitive advantages, exposure to big markets, and management teams I can trust to execute consistently.
With that said, here are three ASX shares that I would be comfortable holding in my SMSF for the long haul. They are as follows:
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Coles Group Ltd (ASX: COL)
I like Coles as an SMSF holding because it is a true defensive business. No matter what the economy is doing, Australians still need groceries, which gives Coles remarkably steady earnings. That reliability is important in an SMSF, where I want to balance growth with resilience.
Coles also offers regular dividends, which I could reinvest to compound returns during the accumulation phase and use as income at retirement. Over time, I expect steady population growth and the company's ongoing efficiency improvements to keep supporting its long-term performance and drive solid returns for shareholders.
Macquarie Group Ltd (ASX: MQG)
Another ASX share I would consider for an SMSF is Macquarie Group. The investment bank is known as the "millionaires' factory" for good reason, with operations spanning banking, asset management, commodities, and infrastructure. Importantly, Macquarie has a track record of adapting quickly to market changes and finding new growth opportunities, which could make it a great pick for the long term.
Overall, I think Macquarie offers the best of both worlds — exposure to long-term themes like renewable energy and infrastructure, along with franked dividends that provide reliable income when retirement comes around.
Xero Ltd (ASX: XRO)
Finally, Xero is one of my favourite ASX tech stocks. Its cloud-based accounting software has become the go-to platform for small and medium businesses across Australia, New Zealand, and the UK. It also boasts growing traction in North America and Asia, and recent acquisitions look set to support this further.
What I really like about Xero is its subscription model, which generates sticky recurring revenue. With millions of small businesses still yet to fully digitise their accounting, I see a long growth runway ahead. Overall, I think it is the kind of company that could keep compounding for decades.
And while Xero doesn't pay dividends right now, I think that further down the line there is a possibility that it will start to return funds to shareholders when it stop investing heavily in its growth.
