Where to Invest $100,000 in Australia: 10 Best Options for 5 Years
Investing $100,000 in Australia has many options, property, superannuation, peer-to-peer lending and more. Each has different benefits, returns and risks so you need to consider your goals.
Property investments like direct residential, REITs and fractional platforms offer many ways to grow wealth. Returns range from 6% in residential to 19.3% in REITs so there’s something for every type of investor.
Other options like managed funds, Australian shares and ETFs offer flexibility and diversification. These investments can grow steadily with returns from 5% to 10% for long term financial security.
Investing $100K in Australian Property
Australia has been a hot spot for property investment for years with opportunities for income and capital growth. Whether through direct residential property purchases, Real Estate Investment Trusts (REITs) or fractional property platforms, each option has its own benefits and returns.
If you’re thinking of where to put $100,000 for a 5 year investment in the Australian property market here is a breakdown, with statistics, examples and expected returns.
Direct Residential Property Investment
Investing in direct residential properties is a tried and true way to grow your wealth. With a $100,000 budget however, investors may need to look at specific regions or property types, particularly in areas with lower entry costs and high growth.
Returns:
Historically residential properties in Australia have delivered an average annual return of 6.4%. For a 5 year horizon this is 34% cumulative return assuming consistent market performance and excluding costs like stamp duty and property management fees.
Affordable Locations:
Safety Beach, NSW: 30 minutes from Coffs Harbour, Safety Beach has affordable entry points with high growth potential due to coastal demand.
Valley Heights, NSW: In the Blue Mountains region, Valley Heights has affordability and steady growth in property values.
Millthorpe, NSW: This little town near Orange has seen growing interest from investors looking for long term growth.
Key Points:
Rental yields in affordable areas can be 3% to 5% per annum extra income.
Direct property investment means managing costs like maintenance, insurance and property management fees.
Real Estate Investment Trusts (REITs)
For those looking for a more liquid and diversified investment REITs offer exposure to many types of property, commercial, retail and industrial real estate. They are listed so you can buy and sell shares on the stock market easily.
5 Year Performance:
Goodman Group: This REIT has been a top performer, benefiting from demand in sectors like industrial warehousing and data centres driven by e-commerce and technology. Over the past 5 years Goodman Group has delivered an average annual return of 19.3% or 96.5% cumulative return.
Scentre Group: Focused on Westfield shopping centres in Australia and New Zealand, Scentre Group has had moderate growth, 4.8% per annum for 5 years or 24% cumulative return.
GPT Group: Manages a diversified portfolio of office, retail and logistics properties, GPT Group has delivered an average annual return of 6.5% or 32.5% cumulative return over 5 years.
REIT Benefits:
Dividends: REITs are required to distribute a large portion of their earnings as dividends, 4% to 7% per annum.
Diversification: Investing in REITs reduces risk by spreading your exposure across multiple properties and sectors.
Fractional Property Investment Platforms
Fractional property investment platforms allow individuals to buy shares in properties, so you can diversify across multiple assets without the need for full ownership. These platforms have become very popular with smaller budget investors.
Performance and Platforms:
BrickX: This platform allows investors to buy fractional interests in residential properties across Australia. BrickX properties have delivered 5% to 7% annual returns depending on the property and location.
DomaCom: DomaCom offers various property types, residential, commercial and rural properties. Over 5 years returns have been 5.5% per annum or 27.5% cumulative return.
Fractional Investing Benefits:
Lower Entry Cost: Investments from $10,000
Passive Income: Investors receive proportional rental income, paid monthly.
Key Points:
Liquidity: More liquid than direct property ownership, but selling your shares may take time depending on market demand.
Platform Fees: Fees will impact overall returns so be careful.
Other Property Investment Options
Beyond the usual suspects, other property related investment options:
High Yield Savings Accounts:
For a low risk option, high yield savings accounts can be used to accumulate funds while earning steady returns. Interest rates in Australia are 4% to 5% per annum so 20% to 25% cumulative return over 5 years.
Government Bonds:
Australian government bonds are another safe option, fixed interest payments. Interest rates are 3% to 4% depending on the bond term.
Investment Options Comparison
Investing $100,000 in Australian property over 5 years has multiple options, each with its own benefits, risks and returns.
Direct residential property is for those who want long term capital growth and steady rental income, especially in affordable but high growth areas like Safety Beach or Millthorpe.
REITs are a diversified and liquid option, Goodman Group has delivered 19.30% over the last 5 years.
Fractional property platforms like BrickX and DomaCom allow you to diversify with smaller amounts, moderate returns.
Each option requires consideration of your risk tolerance, liquidity needs and long term financial goals. Diversifying your investments across different property related options can help manage risk and maximise returns. Seek financial advice to align your investment strategy to your goals.
Superannuation for a $100,000 Investment
Making voluntary contributions to your superannuation fund can grow your retirement savings. With a budget of $100,000 you can do concessional or non-concessional contributions to grow long term.
Contribution Types:
Concessional Contributions: Capped at $27,500 (2025) are tax deductible for you or your employer. Taxed at 15% and beneficial for high income earners as reduces taxable income.
Non-Concessional Contributions: Contributions from after tax income and not taxed in the super fund. Annual cap is $110,000 and a 3 year bring forward rule allows a $330,000 contribution over 3 years.
Government Co-Contribution: If you meet certain income thresholds the government will match your after tax contributions up to $500 and add to your super balance.
Returns:
Australian super funds have historically returned 6% to 9% per annum. Assuming 7% return, a $100,000 contribution would grow to around $140,000 over 5 years.
Super Funds:
AustralianSuper: Low fees and long term returns, AustralianSuper has multiple investment options including balanced, growth and indexed funds.
HESTA: Helping members achieve retirement outcomes, HESTA has a range of investments to suit different risk profiles.
Hostplus: Multiple investment options, popular among hospitality, tourism and sport workers, focused on growth to grow retirement savings.
Contributions and Retirement Planning
Increasing your super contributions can have compounding growth over time and help you retire with more funds. By utilising concessional and non-concessional contributions you can maximise your retirement income.
Benefits of Contributing More:
Tax Efficiency: Concessional contributions are tax effective, great for those who want to reduce taxable income. Non-concessional contributions grow tax free once in the super fund.
Government Incentives: Government co-contribution for lower income earners.
Long Term Growth: Regular contributions over time, even small, can add up to big growth later in your career due to compounding.
To Consider:
Contribution Caps: Make sure you understand the caps for concessional and non-concessional contributions as exceeding them will incur excess tax.
Retirement Age: Stay within the super contribution limits especially as your income increases to manage tax implications.
Contributing for Wealth
To get the most out of superannuation contributions plan your contributions around your financial goals especially if you want to maximise your retirement savings. Use salary sacrifice, make catch-up contributions and compare super funds to achieve long term growth.
Salary Sacrifice Strategy:
By sacrificing some of your pre-tax income you can contribute more to super and reduce your overall tax. Great for high income earners who want to save more for retirement and pay less tax.
Catch-Up Contributions:
If you’ve missed concessional contributions in previous years, catch-up contributions allow you to carry forward unused caps for up to 5 years and make larger contributions in higher income years to boost savings.
Diversify Super Investments:
Choose investments in your super fund that match your risk profile and retirement timeline. Younger people may choose growth assets like shares and property, while those closer to retirement may shift to more conservative investments and focus on stable returns.
By contributing to super strategically you can build wealth for retirement. Maximising voluntary contributions through salary sacrifice and non-concessional contributions is the key to long term growth of your retirement fund.
Peer to Peer Lending
Peer-to-peer (P2P) lending allows individuals to lend to borrowers directly, without banks. With $100,000 you can fund P2P platforms and earn higher returns than traditional savings or fixed income investments.
Types of P2P Lending:
Secured P2P Lending: Loans are backed by assets (e.g. property or personal assets). Secured loans provide a safety net for the lender and more protection if the borrower defaults.
Unsecured P2P Lending: No assets are backed and higher risk. But higher interest rates for the lender.
Business Loans: P2P platforms also lend to small to medium sized businesses (SMEs) where investors can lend to businesses and receive interest payments over time.
Returns: P2P lending offers 5% to 12% per annum. A $100,000 investment at 8% per annum could grow to around $146,000 in 5 years.
P2P Lending Platforms:
RateSetter: A leading platform in the Australian market, RateSetter offers secured and unsecured loans with investment terms from 1 to 5 years. They focus on transparency and risk management.
Plenti: Specialises in personal loans and car loans, Plenti allows investors to lend to individuals who need financing with a focus on competitive rates and minimal default risk.
SocietyOne: Focused on personal and unsecured loans, SocietyOne allows investors to choose loan profiles based on risk and target returns so a more tailored lending experience.
P2P Lending in your Investment Strategy
Adding P2P lending to your investment strategy diversifies your portfolio with high return investments. Higher returns come with risk but balances overall growth by diversifying outside traditional asset classes and boosts long term performance.
P2P Lending Benefits:
Higher Returns: P2P loans offer better returns than traditional savings or bonds and can boost your overall investment income.
Diversification: By allocating a part of your investment into P2P lending you can diversify beyond stocks, bonds and real estate and reduce overall portfolio volatility.
Access to Different Borrowers: P2P platforms allow investors to lend to various sectors, consumer, business and education loans and diversify risk across multiple loan types.
Things to Consider:
Credit Risk: The main risk in P2P lending is borrower default, especially with unsecured loans. Look for platforms that have credit rating tools to assess risk.
Platform Risk: P2P platforms are not as regulated as traditional financial institutions so platform failure is a risk to consider. Choose reputable and established platforms.
Liquidity: Investments in P2P loans may not be liquid, loans are generally held until maturity so not access to funds in the short term.
How to Get the Best Returns from P2P Lending
By choosing the right loan profiles and balancing your portfolio with diversified investments in P2P platforms you can get the best returns while managing risk. Use automated investment strategies that diversify across many loans for best performance.
Auto-Invest:
Many P2P platforms have auto-invest options where investors can set parameters for their loans, risk level and loan amount. This makes investing easier and more consistent over time.
Loan Diversification:
Spreading investments across different loan types (secured, unsecured, business) and borrower credit ratings can reduce risk. This is a balanced approach to P2P lending and protects you in case of defaults.
Monitor and Adjust:
Monitor your portfolio performance on P2P platforms and adjust as needed to maintain your desired risk return balance. Rebalance your investments to stay on track to your financial goals.
Managed Funds for Diversified Growth
Investing in managed funds is a convenient way to diversify your portfolio and tap into professional expertise. With a budget of $100,000 you can explore managed funds to achieve long term growth and risk adjusted returns.
Types of Managed Funds:
Active Managed Funds: Actively managed funds aim to beat the benchmark through strategic asset selection by the fund managers. These funds charge higher fees but seek higher returns.
Index Funds: Index funds replicate the performance of a market index like the ASX 200. They are passively managed, low cost and suitable for investors who want market aligned returns with lower fees.
Sector Specific Funds: These funds focus on specific industries or sectors, like technology, healthcare or energy, and offer targeted exposure based on industry growth trends.
Returns:
Managed funds in Australia have delivered different returns based on asset allocation and market conditions. Balanced funds typically offer average annual returns between 5-8%. Assuming 6% return, a $100,000 investment could grow to around $133,000 over 5 years.
Examples of Managed Funds:
Vanguard Australian Shares Index Fund: Low fees and broad Australian equities exposure, replicates the ASX 300 index.
Colonial First State Wholesale Diversified Fund: Actively managed fund with diversified portfolio of Australian and global equities, fixed income and property assets to achieve long term growth.
Platinum International Fund: Active management and focuses on undervalued international stocks, targets opportunities in global markets.
How Managed Funds Help with Investment Goals
Managed funds gives you diversification and professional management so you can access a mix of assets that you can’t invest in yourself. With the right choice of managed funds you can cater to different risk profiles.
Why Invest in Managed Funds:
Professional Management: Fund managers have the expertise to analyse markets, select assets and adjust portfolios to take advantage of market trends and opportunities.
Diversification: Managed funds pool investor money to create diversified portfolios across asset classes and industries, reducing individual risk.
Accessibility: Investors can invest in managed funds with a small amount, making it suitable for new and experienced investors.
To Consider:
Management Fees: Actively managed funds charge higher fees than index funds which can eat into your returns over the long term.
Market Volatility: Managed funds diversify risk but performance can still fluctuate due to market volatility especially with equity focused investment strategies.
Liquidity and Access: Some managed funds have restrictions on redemptions so consider your liquidity needs before investing in these funds.
Getting the Most out of Managed Funds
To get the best returns, align your managed fund investments with your financial goals, risk tolerance and investment time frame. Regular reviews and adjustments will ensure your portfolio stays in line with the changing market conditions.
Long Term Approach:
Long term investing in managed funds allows you to ride the compounding growth and take advantage of market recoveries, so your portfolio remains stable and grows consistently even during short term economic downturns or market fluctuations.
Fund Research:
Choosing funds with good performance and low fees will give you better returns. Use Morningstar ratings to research funds and align with your financial goals and investment time frame.
Reinvestment of Distributions:
Reinvesting fund distributions instead of withdrawing them will accelerate portfolio growth through compounding.
Investing in managed funds gives you diversification, professional management and accessibility. By choosing the right funds and long term approach you can build wealth.
Australian Shares for Growth
Investing in Australian shares can be a great way to grow your wealth and secure your financial future. With $100,000 to invest, you can invest across different sectors to get the best returns.
Types of Shares:
Blue-Chip Shares: Large established companies like Commonwealth Bank and BHP offer stable dividends and growth. These are for long term investors looking for reliability and consistent returns.
Growth Shares: Companies like CSL and Afterpay focus on high revenue and earnings growth. Higher risk but can deliver big capital gains for aggressive investors.
Income Shares: Shares from companies with regular dividend payouts like Telstra and Wesfarmers provide income. Suitable for retirees or income focused investors.
Returns:
The Australian market (ASX200) has returned around 9% per annum including dividends. Investing $100,000 in a diversified portfolio would grow to around $153,900 in 5 years at this rate.
Examples of Australian Shares:
Commonwealth Bank (CBA): Solid performer and regular dividend payer, CBA shares are for risk averse investors looking for stable returns in the banking space.
CSL Limited: A biotechnology leader, CSL has strong growth potential, suitable for investors looking to invest in the healthcare sector.
Woodside Energy: A major player in the Australian energy sector, Woodside offers dividends and exposure to the global energy market, suitable for income and growth investors.
Australian Shares and Wealth Building
Including Australian shares in your portfolio can help build wealth through capital growth and dividend income. Strategic allocation can improve portfolio performance.
Benefits of Australian Shares:
Income: Dividends are a key feature, many Australian shares offer high yields. Franking credits are the added bonus, reducing your tax liability.
Diversification: Australian shares offer sector specific opportunities in mining, banking and technology, when combined with other asset classes reduces overall investment risk.
Liquidity: Shares are highly liquid, you can buy or sell quickly in response to market movements or changes in your financial situation, so you can manage your investments and adjust your strategy as needed.
Consider:
Market Volatility: Stock prices move for many reasons including market sentiment, economic changes and global events, so you need to have a long term investment view to manage the risk.
Tax: Dividends are taxable. Franking credits can help but you need to consider your personal tax rate.
Research and Monitor: Stock investing requires ongoing research and monitoring of company performance, market trends and economic indicators.
Get the Most out of Australian Shares
Investors can get the best returns by having a researched strategy, diversification, tax efficiency and aligning with your long term financial goals for growth and wealth accumulation.
Sector Specific:
Focus on growth sectors like renewable energy and technology. Investing in these fast growing sectors can offer big capital growth and long term returns.
Dividend Reinvestment Plan (DRP):
Dividend Reinvestment Plans (DRPs) allow you to reinvest dividends into more shares, so compounding growth and wealth creation over time without needing to put in any extra money.
Portfolio Reviews:
Review your portfolio regularly to align with your goals and market conditions. Rebalancing reduces risk and captures opportunities, so you can grow your wealth through Australian shares and smart investing.
ETFs for Diversification
Exchange-Traded Funds (ETFs) are a popular choice because of their flexibility, diversification and low fees. With a $100,000 investment you can choose ETFs that align with your goals, across various asset classes like equities, bonds and sectors to get the best returns.
Types of ETFs:
Equity ETFs: Invest in shares of companies across different sectors and regions. They give you broad market exposure and are a good choice for those who want to build long term growth through diversified stock holdings.
Bond ETFs: Government or corporate bonds, lower risk and steady income. Good for those who want stable and less volatile returns compared to shares.
Sector ETFs: These ETFs target specific sectors like technology, healthcare or energy. They give investors concentrated exposure to the industries they are interested in, higher returns but higher risk.
International ETFs: Exposure to foreign markets and regions, emerging markets or developed markets like Europe and Asia. They give portfolio diversification and helps manage domestic market risk.
Returns:
ETFs have given different returns across asset classes. For equity ETFs, average long term returns can be 7% to 10% p.a. A $100,000 investment in a diversified ETF portfolio could grow to over $170,000 in 10 years at 8% p.a. to show you the power of compounding.
Examples of ETFs:
Vanguard Australian Shares Index ETF: Tracks a broad range of Australian shares, low fees and high liquidity. Good for those who want exposure to the top Australian companies.
SPDR S&P 500 ETF (SPY): A global ETF that tracks the S&P 500 Index, gives exposure to big US companies with growth potential.
iShares Global Clean Energy ETF: Gives exposure to the clean energy sector, focused on renewable energy companies. As demand for sustainable investing grows this ETF offers big long term growth.
How ETFs fit into an investment strategy
Adding ETFs to your investment strategy can give you benefits like cost effective diversification, ability to track the market and liquidity. With the right mix of ETFs you can optimise risk reward and reduce volatility in your portfolio.
Why invest in ETFs:
Diversification: By holding multiple assets in one investment, ETFs reduce the risk of any one asset. Good for long term growth.
Cost Efficiency: ETFs are low fee investment products. Most charge lower management fees than actively managed funds so more returns stay with you.
Liquidity: ETFs trade on the stock exchange like shares, so you can buy or sell easily. You can adjust your portfolio quickly as market conditions change, stay flexible.
Things to keep in mind:
Management Fees: Even low fee ETFs have management costs, though small, you should consider it when calculating your overall return.
Market Volatility: Equity ETFs are subject to market volatility. A sudden market downturn can impact ETFs that track stocks, especially sector specific ones.
Investment Horizon: ETFs are good for long term investors looking for gradual growth. For short term investors, market volatility can result in bigger fluctuations in returns.
Getting the most out of ETFs
To get the most out of ETFs you need a well thought out strategy based on your risk tolerance, investment goals and time horizon. Diversify across ETFs across asset classes, sectors and geography to get long term growth and reduce risk.
Rebalancing your ETF portfolio:
Over time different ETFs will outperform or underperform. Rebalancing your portfolio regularly ensures your asset allocation is in line with your financial goals and manage risk by adjusting ETFs to your target weightings.
ETFs in superannuation:
As part of a overall superannuation strategy ETFs provide a easy and efficient way to build wealth over time. For steady returns in retirement consider bond ETFs, for growth in earlier years equity and sector ETFs.
Dollar Cost Averaging:
By dollar cost averaging you invest a fixed amount regularly and reduce market timing risk. This strategy allows you to buy more shares when prices are low and boost long term returns for ETF investors.
By choosing a broad range of ETFs and actively managing your portfolio you can get long term returns and build a strong foundation for your investments and have financial security in the future.
FAQs
Is investing in Australian property good for 5 years?
Property can be a stable investment, with potential for capital growth and income through rental yields. Over 5 years property markets can fluctuate but generally trend up long term.
But illiquidity of property can be a problem for short term investors. Selling property quickly can result in big transaction costs and market conditions may not be ideal within the 5 year window.
How do Australian super funds perform over 5 years?
Australian super funds generally do well long term, with average returns 5-8% pa depending on the fund. For 5 years moderate risk funds will deliver steady capital growth.
But returns will vary based on economic conditions, investment choices and market conditions. Conservative funds will offer stability, high growth funds will deliver higher returns if the market performs well over that period.
What are the returns for Australian shares over 5 years?
Australian shares return around 9% pa with dividends reinvested. A $100,000 investment over 5 years would be around $153,900.
But stock market returns can be volatile and market sentiment can move prices. A diversified portfolio of blue chip or growth stocks will deliver better long term returns but risk must be considered.
Are ETFs good for a $100,000 investment in Australia?
ETFs provide a low cost way to diversify a portfolio with exposure to different asset classes or sectors. They’re perfect for $100,000 investors looking for growth and stability.
ETFs are liquid and with low fees they’re good for long term investors. But performance is dependent on underlying markets and sector specific ETFs can have higher risk based on industry volatility.
What are the risks of investing $100,000 in the Australian stock market?
Market volatility is the biggest risk when investing in Australian shares. Stock prices can move up and down due to economic conditions, global events and company specific factors and impact returns.
And exposure to individual sectors can be risky especially with sector specific investments. While diversification helps, investors must understand the risk of loss especially if the market has a downturn or crisis during the investment period.
How do I diversify a $100,000 portfolio in Australia?
Diversification can be achieved by spreading investments across asset classes such as shares, bonds, property and ETFs. This reduces risk by not having too much exposure to one market or sector.
Investing in both domestic and international markets and different asset types (growth, income and defensive) will give you a more balanced approach. Regularly reviewing the portfolio will ensure diversification is in line with changing economic conditions.
What taxes should I consider when investing $100,000 in Australia?
Investment income such as dividends and capital gains are taxed in Australia. Dividends may be partially or fully franked which reduces the tax. Capital gains tax applies to long term gains.
For superannuation accounts tax benefits apply including concessional tax rates on contributions and earnings. You should assess your personal tax rates and use tax efficient investment structures to get the most after tax returns and minimize tax liabilities.
Is P2P lending good for investing $100,000 in Australia?
P2P lending allows you to invest by lending to individuals or businesses in exchange for interest. It can deliver high returns but has default risk.
Investors must understand the credit risk of the lenders and review the P2P platform’s terms, fees and security. While good for higher returns this investment class is less liquid and may have higher risk than other assets.
How does government bonds compare to other options for 5 years?
Government bonds give you low risk and steady income over 5 years. While returns may be lower than shares or property they are good for risk averse investors.
But the potential for capital growth is limited and inflation can reduce bond returns in real terms. Unlike shares which offer higher growth, bonds may be suitable for investors looking for stability and predictable returns.
What are the benefits of REITs in Australia?
REITs give you diversification into the Australian property sector without the need to own physical property. They give you exposure to commercial, retail and industrial property and income via dividends.
REITs are liquid and tradable on the stock exchange unlike direct property investment. They can benefit from property market growth but economic cycles and market conditions impact returns so diversification in REITs is recommended.
How do I protect my $100,000 from inflation over 5 years?
To protect against inflation consider allocating your investments into assets that will outperform inflation such as shares, property and inflation linked bonds. These generally deliver higher returns over the long term.
Another way is to hold assets in gold or commodities as they tend to be a hedge against inflation. Diversifying your portfolio will give you a balanced risk approach to counteract inflation’s erosion of purchasing power.
What are the best platforms to invest $100,000 in Australia?
Platforms like CommSec, SelfWealth and CMC Markets give you the tools to invest in shares, ETFs and other asset types. They offer low cost trading and good resources.
You can get broad market exposure with these platforms and real time data, research tools and trading facilities. Make sure you choose a platform that suits your investment goals and has sufficient support, educational resources and secure access.
Should I go for managed funds or direct shares for $100,000?
Managed funds give you professional management and diversification good for risk averse investors or those who want a hands off approach. But they come with higher fees than direct share investing.
Direct shares offer higher returns but require more active involvement and research. If you’re confident in your stock selection direct shares give you more control while managed funds are for those who want ease and professional guidance.
How does the current Australian economic situation impact $100,000?
The Australian economy is stable with growth projections but there are uncertainties in global trade, inflation and consumer sentiment that will impact the market in the short term.
Investors should consider risk factors like interest rates and domestic trends. A conservative diversified portfolio can absorb short term volatility and get growth from sectors or assets that will perform well during economic fluctuations.
What are the ethical options for $100,000 in Australia?
Ethical investing is about investing in companies or funds that meet social, environmental and governance (ESG) criteria. In Australia sustainable funds or ETFs that focus on renewable energy, ethical consumer products and social enterprises are popular.
Ethical funds integrate responsible investing strategies which may reduce exposure to industries like tobacco, coal or gambling. While they have strong moral alignment they still require research and understanding of their long term returns.
How do I use $100,000 to plan for retirement in Australia?
$100,000 can grow significantly in a self managed super fund (SMSF) or through regular superannuation contributions. Prioritise long term growth assets like shares, property or diversified managed funds.
Investing with a retirement target helps you build wealth through tax effective structures and access to lower tax rates. Contributions to super accounts with proper portfolio management will get you on the path to retirement.
What are the short term options for $100,000 in 2025?
Short term investments are about capital preservation and liquidity. Consider high interest savings accounts, term deposits or short term bonds all low risk but low returns.
Or low risk ETFs focused on stable income or bond funds can give you returns without big fluctuations in value. Short term investments may not give you explosive growth but will give you security and liquidity when you need the funds in a few years.
How do I allocate $100,000 across different asset classes?
To diversify $100,000 consider splitting the funds between equities, bonds, property and ETFs based on your risk tolerance. Higher risk assets like shares will give you growth while bonds will give you security.
Allocate funds to ETFs, REITs or managed funds to get additional diversification in sectors like tech, healthcare or property. Regular reviews will help you optimise the asset allocation based on market conditions and investment goals, balancing returns with risk.
What are the pros and cons of investing in Australian agriculture?
Agriculture in Australia can give you strong returns especially with diversification across crops, livestock and agribusiness. Agricultural investments will benefit from export demand and growing food security concerns.
But risks like climate change, commodity price volatility and unpredictable environmental factors will pose challenges. Managing these risks and adopting strategies like crop diversification or water efficiency will help protect your agricultural investments from market downturns.
Originally Published: https://www.starinvestment.com.au/where-to-invest-100k-in-australia-5-years/
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