The thought of investing money may send shivers down people’s spines. There is a lot of stigma and a ton of myths around how investments are made. Most people think the only two beneficial ways of investing money is property and super.
Any investment company in Australia offers various types of investment opportunities to their clients. The more you search, the better your chances will be at getting hefty returns. It is estimated that today shares and investments in exchange are some of the most popular investment options in Australia.
Your ultimate goal should be to make adequate returns from your investments. So, it is wise to explore your options first and then put your money down.
Popular Investment Options in Australia
A large number of the younger population is interested in building their investment portfolios. Many consider property and super to be outdated and generic investment options. However, with every passing year, investment opportunities in the country increase manifold.
Shares are a very lucrative investment option for many. Acquiring shares of a company means you are buying a small part of the company. This makes you the shareholder in that company. Further, if the company’s value increases with time, your shares will be worth more than what you bought them for.
LIC or Listed Investment Companies
LICs are a type of investment company in Australia. If you have invested in managed funds before, you might have a basic understanding of how LICs work. A manager is responsible for running a LIC and looks after all the investments made.
It is their job to invest the pooled money in places with a high chance of returns. LICs are close-ended investments, so the number of shares available remains constant in the company. This is despite the number of shareholders approaching the company.
Investment bonds are like managed funds. You invest your money and let a manager look after your investments. This money is first clubbed with other investors’ funds, and the total sum is used as an investment.
Investment bonds are tax-paid investments. So, unlike managed funds, you are not liable to pay tax on your profits after ten years of having these bonds. It can be sold or redeemed after this period, and you will make a hefty profit depending on the investment amount.
If you do not wish to take any risks and want regular payouts from your investments, this is the right option for you. The dividends you get from cash investments are significantly lower than other forms of investments.
However, the amount of risk monumentally reduces with this kind of investment.
An annuity is a popular option for people who like to plan out their retirement beforehand. This type of investment is made so that you can get dividends after you retire. The amount of money you receive is fixed, and it does not change irrespective of the state of the stock market.
You could either get your money back over a few years or choose to get a lifetime annuity. You can invest in this using your savings.
Investments can be a hassle if you are not aware of where you should invest your money. In such cases, it is wise to turn to a professional, preferably working at a famous investment company in Australia. With the proper instruction and assistance, you will be able to build your investment portfolio manifold!