Australian share market moves sideways but recovery in sight
The Australian share market has moved sideways during the first quarter of 2021, but a global economic recovery is on the horizon.
May 4, 2017
When it comes to wealth creation, the key is to start young and invest often.
The earlier you begin investing, the more time you have to compound and grow your money.
So, where does one begin? It depends on your goals and how much risk you’re willing to take.
Here are some options.
Investing in the share market is a fantastic way to grow your nest egg, but it is a long-term commitment and one that carries risk.
Many Australian companies have a minimum share purchase price of $500.
The shares you can buy will depend on the risk you’re willing to take and the returns you’re hoping to make.
Start by researching and purchasing shares in one company, then build your portfolio up over time.
If you have more savings to play with and want to diversify, investing in a fund may be the way to go.
With managed funds, your money is pooled together with other investors and an investment manager buys and sells shares or other assets on your behalf.
Managed funds can be used to buy Australian and international shares, property and infrastructure investments.
You’ll usually need at least $5,000 to invest in a managed fund, but with some it’s possible with $1,000.
Exchange-traded funds (ETFs) have lower fees than traditional managed funds and usually track an index, rather than being “actively” managed.
Be sure to check out a fund’s historical returns and fees before investing.
A term deposit is a savings account that holds your money for a set period and pays you a fixed interest rate.
Most term deposits require about $1,000 as a minimum, and the longer you lock your money in for, the more interest you’ll receive.
Term deposits are low-risk, with a guaranteed return. However, because interest rates remain low, your return may not be overly attractive.
As an example, some banks are currently offering between 2.6% and 3.2% per annum for term deposits of $1,000, held for 36 months, which would give you a return of $78 and $96 respectively at the end of the term. If your deposit was closer to $5,000, your return could range from $390 to $480 for 36 months.
Another option is a high-interest savings account, where you earn interest, so long as you make periodic deposits and don’t withdraw funds. Again, these offer low risk, but also low returns.
At LDB, we can help you to invest wisely and grow your nest egg. We’ll provide advice about how to diversify and protect yourself financially.
To find out more, please call (03) 9875 2900 or contact us via the form below.
The Australian share market has moved sideways during the first quarter of 2021, but a global economic recovery is on the horizon.
The Australian share market performed quite strongly in the second quarter of 2017, off the back of a number of major events, according to LDB senior
The Australian share market had a solid start to the year and a better than expected earnings reporting season, according to LDB senior financial plan