Two low risk investments for the novice investor
Investing in the stock market is risky business, and for the bulk of us mere mortals finance jargon may as well be written in Hindi. Unless you stay informed and read up about financial markets, products and services everyday, you’re entering the world of investments blind.
Relying on expert and professional investment advice can sometimes turn a case of the blind leading the blind and you still ultimately decide where to put your money and carry all the risk — the risk part is probably what puts many of us off.
How do you invest your cash?
People who do successfully grow their wealth by investing swear by it and encourage people who don’t currently invest to do the same. “It would be silly not to”, although after the crash of the stock market, they’re probably signing a different tune.
The good news is, many stocks and bonds, especially in the US market are now cheap and it’s a good time to buy — but if you want to be able to walk before you run when it comes to investing your hard earned cash, here are three low risk investments you can try:
Fixed term deposits
If you like certainty and knowing exactly how much interest you’re going to earn in a fixed amount of time, fixed term deposits are for you. You’ll be making slightly more than if your money sat in a regular savings account but it’s a good start. Find, compare and apply for fixed term deposits at http://www.ratecity.com.au/term-deposits/
Gold
Drag your husband to the jewellers and pick out a gold necklace and ring to match. More and more people are turning to gold as their investment of choice in the current economic climate. Gold has a history of being stable and its value hasn’t gone down with economic crisis.
Apart from buying gold from the jewellers, you can invest in gold by buying into companies that produce gold or gold coins and bullions. Find out more about investing in gold at the Australian stock market blog
and the Perth Mint website.
Capital guaranteed funds
Essentially fixed term deposits by a different name, capitol guaranteed funds are available through your superannuation or insurance fund. It promises to provide full security of your capitol and modest returns over a set period of time. Check out the Australian Super website for information about their capitol guaranteed funds or get in touch with your superannuation broker.
The downside to low risk investments: low risk means low return. To find out more about investing, visit the education and resources section of the Australian stock exchange website.
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