Sydney residents often think that finance and investment trading are only done by the top wealth management firms in Sydney. The world of investments may seem daunting and decisions to invest money may be hindered by unfamiliarity with finance terms and trade options. Investing in actuality can be done at various scales and can be done by anybody. If you want to increase your income or invest your savings, then you should embark on investment decisions that are convenient and workable for your income level.
There are multiple avenues to invest on a local, national and international level. In Australia alone, there are multiple forms of investment portfolios, savings schemes and trading opportunities that you should explore.
But where exactly should you invest? Which options will give you high returns? This is a pertinent question that has five probable answers.
- Bank accounts
You can start investing your money with a savings account. Most banks need a minimum balance in the account in order for it to accrue interest. A simple savings account can be doable, but if you would like to put some money away, you can invest in a term deposit. Put a sum of money in term deposit, saving it in a bank account for a designated period of time during which you cannot withdraw the money. You will be able to access the money at the end of the period along with the interest earned. The longer the term, the higher the interest you gain.
Equities, also called stocks, are traded on the stock market through brokers. You can access brokers online or through firms so that they can assist you with investments in suitable and profitable stocks of various companies.
You can invest in properties if you have savings or if you take out a mortgage. Mortgages are to be paid on home loans for about 30 years so property investment through this should be done if you do not have other means. If you have money tucked away, it might be useful to buy properties to rent or sell off after they increase in value.
- Index funds
An index fund may sound complicated, but it is really simple. It requires you to pool your money in with other investors for multiple kinds of assets. A fund manager will either look after the portfolio of assets themselves or will assign the portfolio to a brokerage firm. You will receive money based on the value of the assets and your share of units i.e. your investment.
ETFs are Exchange Traded Funds. Remember Equities and Index funds? ETFs are similar to both of them. You invest in stocks on the stock exchange here instead of units in an index fund. However, you do invest with other investors. The investments can be facilitated through brokerage firms and as a result be somewhat expensive. However, ETFs are a much more flexible way to invest and as the top wealth management firms will tell you, they allow you to earn a significant income. To learn more about finance and investment, please visit our website here.