For growth, think shares...
When you buy shares, also known as equities, you buy ownership of part of a
company and share in its future. Shares are considered growth assets, which
means they offer potentially high returns. But share prices can also experience
dramatic highs and lows over the short term. You can invest in international
and Australian shares.
Learn more about Australian
and international shares in our 'Managed funds' section.
...or think property
Like shares, property is considered a growth asset, offering the potential
for both capital growth and income. But you don't have to buy the whole house
to invest in property. You can invest in listed property investments that are
managed property assets. That way you can have a growth asset that is still
relatively easy to buy and sell.
What does capital growth mean?
For security, think bonds
Bonds are also known as fixed-interest securities. They guarantee to pay a
regular amount of money, and repay your investment at a pre-set date in the
future, known as the maturity date. Bonds can perform better at different times
of the economic cycle, so they can help you diversify your portfolio. Bonds are
generally regarded as a lower-risk investment than shares or property.
For low risk, think cash
Cash investments do not simply mean putting money in the bank. Cash
management trusts are managed funds that invest in cash, usually the short-term
money market. They offer similar security and access as bank savings accounts,
but often at a better rate of interest. However, if you leave your investment
in cash too long, your gains may be eroded by inflation.
To spread risk, diversify
If you want it all, then think about diversifying - spreading yourself
across the asset classes. This helps you to manage risk without sacrificing
returns. You can diversify within an asset class, for example, by buying shares
from different companies and you can diversify across the asset classes, with a
mixed assortment of shares, property, bonds and cash.
Why diversify?
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