In June of 2021, investments accounted for 23.9% of Australia’s GDP. This status indicates that almost a quarter of the nominal GDP is dependent on the adult population making investments.
With newer and more nuanced ways of investment, people are looking towards investment options in Australia that could serve them positively in the long term.
Read on to find ways to increase earnings through investments.
Cash
Cash investments are low-risk, stable, and often have lower returns than the other investment option on this list. As a result, cash may be an excellent solution if risk-sensitive or working on a tight deadline.
Shares
When individuals buy shares (also known as equities or stocks) in an Australian or international firm, they are essentially purchasing a part of that company and becoming a shareholder.
If the value of the company’s shares rises, so will the value of the investment. In this case, they stand to get a percentage of the company’s profits in the form of dividends. However, it is also possible that it may not get any returns whatsoever.
ETFs or Exchange Traded Funds
An exchange-traded fund (ETF) is a managed fund purchased and sold on an exchange, such as the Australian Stock Exchange (ASX), and tracks a particular asset or market index.
ETFs are often a passive investment solution because most of these investment products seek to track an index rather than outperform it. This means that the investment value in an ETF will fluctuate as per the index it is monitoring.
ETFs are typically easier to acquire and trade, and they have lower fees than other types of investment products. They are part of a larger category of investment goods known as exchange-traded products, or ETPs, which can be bought and sold on a stock exchange.
REITs or Real Estate Investment Funds
Suppose a person decides to invest in an investment or growth bond (or insurance bonds). In that case, the money will be pooled with money from other investors, with an investment manager managing the funds and making day-to-day investment choices, similar to a managed fund.
This results in a hands-off approach for the investor, which might be beneficial if individuals are too busy to watch their assets or prefer to delegate decision-making to a qualified manager.
P2Ps
P2P is a form of borrowing money without using a traditional lender such as a bank. It works by matching investors with firms or individuals in need of a loan.
Most P2P lending is conducted through an internet platform that serves as an intermediary between investors and borrowers and charges a fee for its services. The lender would be able to see what loan they want to fund through the platform, and the borrower will be required to repay the loan with interest over time.
Cryptocurrencies
Probably the most talked-about investment option on this list, cryptocurrency is a computer-generated currency that exists as a digital token. Bitcoin is the most well-known among all cryptocurrencies, but many others, including Ethereum, Litecoin, and Ripple.
Cryptocurrencies are stored in a digital wallet and can be used to purchase tangible goods as well. Transactions are recorded on a massive digital database known as a blockchain.
Summing Up
There is hardly any dearth of investment options in Australia. Moreover, with more opportunities opening up every day and investment advisors at anyone’s service, it will only get easier.
So go ahead and find the perfect form of investment, but remember always to consult an investment manager!
