Have you ever wondered what the most popular assets and investment vehicles were across the globe? In truth, the answer to this question varies from one location to another, depending on an array of social and cultural factors.
In Australia, for example, a 2017 study by the Australian Securities Exchange (ASX) revealed that shares were the most popular investment asset, along with a variety of other entities typically traded on an exchange.
In this post, we’ll list the most popular investment options in Australia, while asking what ensures they have such a high demand.
#1. Real Estate
We’ll start with real estate, which remains one of the widely traded investment options down under and one that can be leveraged through a number of means.
In addition to actually buying brick-and-mortar properties for the purpose of resale or to pursue rental yields, you can also seek out real estate investment trusts (REITs) on the public market.
This refers to a type of property fund listed on a public market (such as the ASX), in which you can purchase units through a shared and managed pool of assets. This can afford you access to a broad range of properties, including commercial, industrial and retail entities. When it comes to property investment, buying real estate Sydney is a popular option amongst investors.
#2. Fixed-Income Bonds and Annuities
We’ve already spoken about the popularity of shares and equities, but investors often choose to combine this type of asset with fixed-income products such as bonds.
Bonds tend to mature over time and deliver a more reliable source of income, while they can also be issued by trusted institutions such as large corporations and governments.
A similarly risk-averse investment option lies in the form of annuities, which provide a guaranteed source of income regardless of the wider financial and economic climate.
They can also vary in terms of how they’re paid, whether you have regular payments over a fixed number of years or for the remainder of your life.
#3. Exchange Traded Funds (ETFs)
While investing in single stocks and equities remains popular, a growing number of traders are now turning to exchange traded funds (ETFs) as a way of minimising their exposure in the stock market.
This refers to a type of managed fund that can be bought and sold directly on an exchange, without requiring you to assume ownership of the underlying financial assets.
For Aussies, it’s possible to trade various ETFs through the Australian Stock Exchange (ASX), as you look to select an option that successfully tracks target stocks in particular nations and industries.
Increasingly, Australians are also getting involved in the crypto market, which now boasts a cumulative market cap value of $2.4 trillion and assets that can be traded both in the short and longer term.
Of course, this market is known to be one of the most volatile of its type anywhere in the world, with sentiment largely driven by the perception and performance of first-generation assets like Bitcoin and Ethereum.
You’ll need knowledge to leverage crypto successfully, however, although there’s no doubt that BTC has proven to be a particularly effective buy-and-hold investment asset in recent times.