Investment Strategy

In becoming a successful investor, it’s important to align your objectives with a suitable investment option.

Below you can find information on key investment types, that can be utilised to create or supercharge wealth, in different ways.


A diverse portfolio can help protect your wealth from market ups and downs. Every investment holds certain risks and potential rewards, but typically investments can be classified as defensive or growth investments. 

Growth investment options 

Growth focused investment options are considered to hold greater risk but typically involve a higher reward ratio compared to defensive investment options. Growth investments can increase your capital and provide income such as rental income on investment properties. Compared to defensive investment options, growth investments are seen to be a lot more volatile, with prices and worth of your investment fluctuating a lot. 

Growth investments are a great option to: 

  • Obtain a high rate of return on your investment. 
  • Meet long term financial goals. 

Property

Property is typically considered a safe investment.

Property generally maintains or appreciates in value, even when other assets are on the decline.

With the right investment strategy advice, property has the potential for capital growth, which refers to the value of a property increasing over time.

Stocks

Stocks are key component to any successful investors portfolio.

The ability to increase your wealth in the short term and long term is one of the key advantages of investing in the stock market. 

The stock market tends to increase in value over time, despite the fact that individual stock values fluctuate on a regular basis.

Alternative Investments

Value can be found in a lot of strange places...

Alternative investments, simply put, are any investment that does not fall into one of the classic categories of stocks, bonds, or cash, and is not priced or evaluated in a way that is directly connected to any of these.

Alternative investment items include art, wine, antiquities, stuffed animals, Pokémon trading cards, or a strand of Dolly Parton’s hair!

Defensive investment options  

Defensive assets provide long-term stable returns with lower volatility. Examples of defensive assets are fixed interest investment options such as bonds, and cash investment options which include bank deposits. 

Defensive investments are a great option for: 

  • Meeting short-term financial goals. 
  • Diversifying a portfolio. 
  • Feeling secure about your investment.

Cash

Cash investments generally offer a low return compared to other investments but are considered a safe investment option.

Cash investments are easy to understand and very quick to action.

You can set up some savings accounts and term deposits almost instantly.

You can choose between a fixed rate of interest or a floating rate. Cash investments are considered the most secure type of investment. 

Term Deposits

Term deposits are a low-risk way to invest your money and earn a fixed rate of interest.

With a term deposit, you lock away an amount of money for an agreed length of time (the ‘term’) – that means you can’t access the money until the term is up.

In return, you’ll get a guaranteed rate of interest for the term you select, so you’ll know exactly what the return on your money will be.

How to choose your investments   

Before you invest, make sure you research your investment to understand: 

  • How it generates a return and the type of return expected (capital gain or income). 
  • What the risks of the investment are. 
  • The fees and charges involved. 
  • How long you might need to invest to receive your expected return. 
  • Legal and tax implications of the investment. 
  • How the investment will contribute to your diversified portfolio. 

 

All of this can be researched by a financial advisor, who will be able to collate and present all of their detailed findings to you in a meeting. If you have an investment idea, contact us, and we’ll work with you to develop the best plan we can use to carry out the investment. 


How to invest
 
 
 


Buy and sell investments yourself
 

An advantage of investing by yourself it can be a cheaper option, as opposed to paying someone to invest your money. The risk is that you may overrate your expertise and may not diversify or achieve the results you want. It is recommended that you at least seek professional advice in the early stages of an investment to ensure you fully understand what you’re in for!

 

Investing with a financial adviser 
 
If you need help choosing the right investments, get financial advice. A moneylab financial planner will help you set your financial goals, understand your risk tolerance and find the right investments for you. They are the experts in finding the best type of investment to suit you and your needs. If you have an investment idea or are looking to boost your wealth, contact us, and we’ll develop the most effective investment plan catered to you. 

Caution!

Investing without knowledge and understanding is just speculation and relies on luck. We recommend speaking to a professional about your financial goals and needs to ensure you make educated and composed decisions. Contact us today to speak to a financial advisor, who will help bolster your investment strategy and returns. 

Speak to us about your investment opportunities

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