Types of investments
There are many options available if you choose to invest.
- Managed funds allow you to invest across a wide range of asset classes, including both Australian and international shares, property and fixed interest. Your money is pooled with money from other investors and managed by a team of experts. Funds are allocated across different asset classes on a percentage basis.
- Shares are a long-term investment but even a small purchase will help you to learn about the stockmarket and build your knowledge of the market for the future. You can earn dividends from shares and over time your shares may grow in value (but can also fall in value).
- Cash and fixed interest accounts include fixed interest bank accounts and term deposits. They give you easy access to your funds and they are secure.
- Bonds are a loan that you make to an organisation, usually a government. You buy a bond for a set amount at a certain interest rate. Your interest is paid regularly and at the end of the set period, you get back the face value of the bond.
- Property is a popular investment option in Australia. When you buy an investment property you get rent from tenants. The value of the property may rise over time (but can also fall).