ISM Investment

If you’re curious to know the options for investing other than super or property, look over the many investments available in Australia which you can think about when building a portfolio. Here’s a look at some of the more common options for investment in Australia that you might think about when creating your portfolio of investments.

  1. Cash investments

If you place your cash in cash-based investments they are typically lower than other investment options. But, these kinds of investments typically offer an income that is stable and low-risk via an annual interest payment and are an option for you if at high risk or have an extremely short timeframe.

  1. Index funds managed

In an index or managed fund, many investors deposit their funds into a shared pool that is utilized as a way to put money into a wide range of assets. The returns you get will depend on the worth of these assets, as well as the amount you’ve invested in the pool.

Certain managed funds can be active funds where an investment professional will look for high-value stocks and then invest the funds pooled for the benefit of the group. You’ll need to place the trust of the fund’s manager and you’ll want to have confidence in their abilities. There is also the possibility of having to pay in exchange for the services they provide.

  1. Fixed income investments

Fixed-interest investments typically have a fixed time frame for investment and can provide regular income through periodic interest payments. They are generally more secure than other kinds of investments. They can provide diversification and balance in the portfolio of investments. Fixed interest investments are offered by companies and governments in Australia and around the world.

A bond issued by the government is one illustration of a fixed-interest investment. It gives the investor regular payments of interest, and after the bond has matured the initial amount put into it is given back to you. The value of the investment will not rise in line with inflation.

There are various types of fixed interest investments with different investment periods and risk factors, for instance, fixed interest investments offered by a company could be riskier than one offered by government institutions.

  1. Shares

If you buy shares within Australian or other multinational companies it is essentially purchasing part of the company, which makes you an investor. If the share of the corporation rises in value then you’ll see the worth of what you invest may increase. You may also get a share of the company’s earnings as dividends. If the price of the shares falls then the price of the investment will likelydecrease. If you own the shares you’ll need to decide when to purchase shares as well as when they’re sold. Also, keep an eye on that it is possible that you could not be receiving dividends in any way.

  1. ETFs

ETFs, also known as Exchange Traded Funds can be described as an amalgamation of both equities and index funds. Similar to a traditional index fund ETFs put their money into a range of investments belonging to a specific category.

It’s the difference that instead of buying units of an ETF as you would with a managed fund or index it is possible to purchase shares of an ETF similar to buying stocks on the stock exchange and they can be traded or sold if you wish to.

Purchase of shares of an ETF can be cheaper, quicker as well as more flexible than purchasing units of managed funds. They also may be an easier method of investing in the index’s portfolio of assets.

 

General Advice Warning

The information contained on this blog is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.

Taxation, legal and other matters referred to on this website are of a general nature only and are based on ISM Accountant’s interpretation of laws existing at the time and should not be relied upon in place of appropriate professional advice. Those laws may change from time to time.