About this blog
Investing is the act of allocating and managing funds to an asset/diversified portfolio with the goal of generating income. The investing technique is not only for wealthy people; anyone can start investing with even a small amount.
Kinds of Investors
The investors engaged in the investment activity varies according to their tolerance to risk, investment knowledge, investing timeframe and many other aspects.
Those who actively follows the stock market and intends to engage in every aspect of the investing experience are aggressive investors. Such investors spend a substantial amount of time in studying various aspects of the stock market to figure out the possible movement in the stock before the other investors could realize.
Unlike aggressive investors, these investors do not try to look for maximum possible gains at all the time. They are also termed as the ‘buy and hold’ investors that hold the investment for a very long time. They try to maximize returns by reducing buying and selling and holding a customized portfolio selected for their needs.
Risk-Averse Investors: Another category of investors is the risk-averse investors that prefer choosing the low-risk option while selecting between two different investments. Out of a higher return investment with unknown risks and a lower return investment with lower risk, such investors go for low return investments.
Risk Lover Investors: In contrast to the risk averse investors, risk lover investors are willing to take higher risks in order to earn higher returns while investing. A risk lover investor moves towards extremely high potential pay-outs’ investments even if it comes with a potentially greater loss.
Investment Options in Australia
Australia is among the most robust economies in the world and offers several investment options for people seeking investment opportunities. The below mentioned are few of the investment options available in Australia:
- Cash investments
- Property – Real estate investment trusts (REITs)
- Fixed interest or Fixed Income Investments
- Exchange traded funds (ETFs)