While investing is quite an easy activity, choosing the right investment channel is very difficult. There are so many investment options permanently contesting for your attention – property, bullion, stocks, cash instruments, etc. Which one do you finally pay your attention to? The right answer is – ALL!
You could always diversify your investments by opting for different investment options. However, to do so, you must first acquaint yourself with all the investment options available in the market.
So what are the various investment options available?
1. Cash investments
These investments refer to bank and term deposits. A savings deposit is a good example of a cash investment. However, returns from these investments are quite small, so these are probably not for an aggressive investor. However, the low-risk appetite investors would find them ideal since the returns are close to stable. Investors who are risk-averse can consider cash investments in their portfolio.
This is a very popular investment choice the world over. Shares mean holding in a company. When you buy shares, you are buying into the ownership of a company. You can buy shares directly when a company is being launched or you may buy them from an existing shareholder through a broker. When you buy them at the time of the launch of the company, the price is generally lower. Over a period, this price may rise if the brand goes on to become a topper. Or, the price may dip because the company has not performed well.
When you buy shares through a broker, you pay a certain brokerage to him or his company. Once the share transfer is complete, you are a shareholder of the company. Now you have certain privileges like voting in the AGM of the company, asking for financial reports or even deciding on the future course of the company.
Some companies share their profits with their shareholders in the form of dividends.
Many people consider bullion investing as a complicated and expensive affair. But as we shall see later, investing in bullion requires no rocket science. The word ‘bullion’ refers to gold, silver, and also platinum. Bullion investors sell or buy these metals.
Gold is the most preferred metal in this form of investing. It offers a hedge against inflation and a falling U.S dollar. If you have an investment portfolio, then you can protect your future earnings by buying gold. Even if you aren’t a seasoned investor, you can consider investing in the yellow metal for the sheer value it holds. There is no need to do in-depth research in gold investments, companies like Gold Bullion Australia give seasoned advice to all the new investors.
If you have got some substantial money to spare, you may consider investing in the Australian property market too. However, please note that selling off of your property is not a quick affair. Property is a very illiquid asset and the price of your plot, house or building can depend on various factors.
5. Fixed Deposits
This is another place where you can make some decent money. Fixed Deposits are bank instruments actually. You pay a substantial sum to the bank and it assures to pay a certain interest on your money for a particular period. That interest may or may not be tax chargeable. Always check with your respective bank about the taxation scheme for fixed deposits made with them.
Lastly, you may consider investing in bonds, which are, simply put, debt instruments. When you buy bonds, you are actually lending your money to the bond issuer for a certain interest. Before buying bonds, please check the financial health of the issuer.
We have listed these investment tools down with an attempt to help you stay at the top of your game financially. Happy investing!