Business Ideas / Small Business / Startup Strategies

Best Ways to Start Investing in Australia

Investing can be risky, but it’s possibly the best way to earn “passive” income without working extra hours. There are many different ways you can invest your money. Here are several popular and reliable ways to invest your money in Australia:

Savings Accounts

Putting your money in a savings account is one of the easiest ways to invest anywhere. Also known as cash investments, savings accounts are also considered a “safe” type of investment, as opposed to riskier investing like betting on the stock market. Though relatively certain, savings accounts generally deliver low returns. You will have to wait several years before your investment delivers a good profit.

Buying Shares

In Australia, you can buy shares in both local and international companies. There might be certain restrictions when it comes to how much you can invest in an international company. Local shares can be a better option, as you are more familiar with the companies and the local economy. Shares, however, are only a worthy investment if the company increases in value. Not all shares deliver dividends. And if share prices fall, you may not get any dividends. This is why it’s important to thoroughly research a company before you buy shares in it. 

Exchange Traded Funds

An ETF is a managed fund, where professionals oversee a selection of investments. And ETF is made up of a market index or a very specific type of asset that is traded on a stock market exchange. For example, you can invest in real estate ETFs that trade property or related assets on an exchange. There are ETFs for many assets classes, including for gold. If you are interested in ETFs, it’s best to first look up reliable and highly professionals local fund managers Melbourne who know the Australian market. ETFs are considered a good way to earn passive income. But you need to be careful where you put your money.

Insurance Bonds

An insurance bond is similar to managed funds. Instead of asset classes like in ETFs, insurance bonds are essentially pools of money collected from a number of investors. A fund manager then invests this bond so it grows over time. Insurance bonds can be highly lucrative in the hands of professionals. Plus, insurance bonds are taxed differently as they are long-term investments, so you can benefit on the tax front as well.


An annuity is a highly popular investment in Australia for financial security in retirement. An annuity is basically a bond between the investor and an insurance company.  The investor agrees to regularly contribute to an annuity fund during the working years. In return, the insurance company guarantees the investor a certain amount of income in retirement age. In Australia, you can buy an annuity with your regular savings through your super. It’s a very long-term investment plan, and you won’t see results until you retire. On the plus side, annuities are near guaranteed so they are highly suitable for risk-averse investors.

Keep in mind that most investments bear fruit only on the long term. So don’t expect get rich quick schemes. If you want to retire comfortably, it’s best to start thinking about investment options like the ones above right now.

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