We have all been watching the financial developments in Turkey with intrigue. So what are we to make of the interest rate increase to 24.00%, while Australians are coping with a record low of 1.5%?
If you have cash assets, they are going to generate just 2.8% annually, so it’s time to take investment action and make some returns.
Remember that investments have inherent risks, and any current performance does not give you a future guarantee!
Low-Risk Investment With Fixed Income Assets
If you are looking for a regular income, then fixed income assets are a good choice. The most popular assets are Australian government bonds, where you receive interest from the government paid in instalments.
The ASX report indicates an annual return of 6.1% for Australian bonds, much more than your cash assets will achieve. If you are considering an investment portfolio, then they also help to offset losses from speculative investments.
Speculate With Currencies, Stocks & Shares
If you are interested in higher risk investments, then currencies, stocks or shares are something to consider. They can yield short-term and long-term returns, but the stock market and Forex are both highly volatile, so be aware that they can also generate high losses. You can choose from a huge range of assets, from precious metals and commodities to multiple foreign currencies.
Those investors who want high liquidity will be attracted to Forex and the huge currency trading market, with maximum flexibility and leverage. Be aware that investing can be risky for beginners, so make sure you research and take a free beginners course in Forex trading before you start.
A Property Portfolio For The Future
A lower risk option is investing in residential property, which showed an 8.1% increase in Australia over ten years to 2016. It’s a popular choice, and many areas are still showing a property boom, so it attracts investors of all kinds. If you look at the Australia House Price Index, then you will see that it has ups and downs. However, using this guide will help you to choose the right area and the right time for your investment.
Access Multiple Assets With ETF’s
Exchange Traded Funds give you access to a wide range of assets on the stock exchange. As they cover a portfolio of holdings from property to stocks, they offer a low-cost method of spreading your investments. They are also a lower risk option which can provide a good long-term return.
Australian Index Funds, “passively managed” ETF’s, are another low-risk alternative. These generally track one of the market indexes such as the Australian Securities Exchange.
Cryptocurrencies Are The Future
Investing in digital currencies can produce some good speculative opportunities for wise investors. The popular Bitcoin was created in 2009, and in 2013, when its price soared to $266, it attracted everyone’s attention. Bitcoin has now been joined by Ripple, Ethereum and hundreds of others, but the young market is still extremely volatile. Early investors in Bitcoin made immense profits, but recent crashes have left late investors with devastating losses, so beware!