Often, we associate investing with the ever-changing market and its volatility, almost making it difficult to imagine stability in investing.
However, that’s simply not the case. If you’re looking for solid and reliable investment options that offer great returns, you’re at the right place. Here are five smart investments that provide stability while still allowing you to reap the rewards of your money.
If you’re looking for a passive and guaranteed way to invest and grow your money, you might want to consider putting your money in term deposits. Getting started with term deposits is simple. All you need to do is to choose how long you want to invest your money and adhere to the process of the bank.
The longer you keep the money in the term deposit, the higher the interest rate you’ll get. Average term deposit rate in Australia is between 0.52% as of May 2021, but there are other banks that offer up to 4.5% for their term deposit interest rate.
Cash Savings Accounts
Cash savings account may be the first type of account you’ve ever opened, and it’s still one of the safest investment options to choose.
The interest rates are low, but you can access your money whenever needed without penalty. Plus, there is no market risk associated with these types of accounts, so you know that your funds will remain secure.
There are two types of Australian Government Bonds: Exchange-traded Treasury Bonds (eTBs) and Exchange-traded Treasury Indexed Bonds (eTIBs), both of which maintain the features of safe and stable investment options.
While the returns are small, it’s steady and low-risk. Government bonds typically offer higher rates of return compared to cash saving accounts but still lower and safer than stock market investments.
Dividend-paying stocks are a good option for stability and income.
If you’re looking to invest in these, turn to blue-chip companies with a steady history of stable earnings and paid consistent dividends to their investors. Additionally, Investing in blue chip stocks can provide long-term capital appreciation which will greatly help you build stability in the long run.
Money Market Funds
For hands-off investors, money market funds are a great option for stability.
Money market funds invest in low-risk, short-term debt instruments such as government securities, certificates of deposit, and commercial paper, making them a good option for conservative investors.
Investing for stability is an important consideration for those looking to build their wealth. While there are no guarantees when it comes to investing, there are a number of options available that can provide a degree of security and peace of mind. Government bonds, blue chip stocks and exchange-traded funds all offer the potential for long-term growth with an element of stability.
It is important to do your research and understand the risks associated with each investment option before making any decisions. By taking the time to understand the various options available, you can make an informed decision that will suit your individual needs and goals.
No matter how you decide to invest your money, make sure you are practicing the best security measures to keep your money safe. Please see the helpful infographic below for more information.
Provided by Chicago Partners – a high net worth financial advisor