Investments

There are many different types of investments if you are looking at options to grow your money and the one/s you choose depend on your individual situation, how much money you have to invest, your investing timeframe and the level of risk you are willing to take. You can talk to a financial advisor to get professional advice on what is best for you, which may include multiple approaches.

Some investment options are provided below, but you may like to get professional advice for your individual situation. More information on investing is also available on the Australian Government Money Smart website.

Bank savings

One savings option is simply holding your money in your bank account or investing in a term deposit. You might have lower returns on your money compared to other investment options due to lower interest rates but it is a more conservative option. You can also put your money into your variable rate mortgage or offset account which will reduce the interest you pay on your property and lead to more savings in the long term.

Stocks

Different shares or equities where you are investing as a shareholder in a company have different results and can result in high gains or significant losses. Some people receive a dividend which is a portion of the company's profits.

Managed funds

Managed funds involve a fund manager pooling your money with other people on your behalf. It can involve a mixture of different investment options including shares, bonds and property.

Cryptocurrency

Cryptocurrency is decentralised which means they are not controlled by an individual person or any government. The most well known cryptocurrency company is Bitcoin which is a form of currency that many places are now accepting as a form of payment.

However, cryptocurrency is not just about alternate currencies. Many companies are providing solutions to issues such as internet bandwidth and advertising fraud via a technology called blockchain.

Cryptocurrency can be quite volatile and it is recommended that you do your own research on the companies that you want to invest in and the platforms in which to do so. Two popular websites to purchase cryptocurrency in Australia include Coinspot and Binance.

After purchasing cryptocurrency you can then transfer it to a secure wallet, such as Ledger or Trezor. The cryptocurrency you purchase may also have their own secure wallet that you can use.

Property

Investing in residential or commercial property can lead to a good return on investment based on the rental return and / or the increase in the value of the property that can occur over time.