But why should you invest in and how, that’s the question and below I will try to offer you a selection of common investment types.
How To Invest 100k In Australia
To put simply, you have a decent chance of getting a good return which drastically grows with more experience.
Investments not only help the economy develop but is also reasonably safe for those well-informed and willing to learn more about the various platforms.
What To Do With 100k
You have no clue what to do with 100k? Invest it.
In general, the best platforms often include some and exclude other features. For example I’m confident in the Forex capabilities of Fortrade but I’m more comfortable with the stock trading on other brokers.
An important thing to consider is the fact it’s not always the top search result which is the best platform for you – often it can take a while of research – going through scam websites and legitimate platforms which are simply below the level of quality we’ve come to expect.
Types Of Investments
Here I will go over the biggest and most welcoming types of investments available online.
1. Forex
As the name suggests Forex trading can be well described by the two parts of the name, “foreign” and “exchange”.
It’s a very simple system as a matter of fact. You buy one currency for another in hopes of it rising in value so you can buy another currency which will also rise in value and so on.
Forex, also known as foreign exchange or currency trading, is the world’s largest and most liquid financial market. It operates 24 hours a day, five days a week, and trades over $5 trillion worth of currencies every day.
Investing in forex can be a great way to diversify your portfolio and potentially earn significant profits, but it’s important to understand the risks involved.
The value of currencies can fluctuate rapidly, and there is always the possibility of losing money if you make the wrong trades.
To start investing in forex, you’ll need to open a trading account with a reputable broker. Look for a broker that is licensed and regulated by the Australian Securities and Investments Commission (ASIC), which ensures that your funds are protected and that the broker operates in accordance with strict standards.
Once you’ve opened your trading account, you can start buying and selling currencies based on your analysis of market trends and economic indicators. It’s important to develop a solid trading strategy and to always manage your risk carefully, using stop-loss orders and other risk management tools.
One of the advantages of forex trading is that you can start with a relatively small amount of capital and potentially earn significant profits. However, it’s important to be patient and disciplined, and to never invest more than you can afford to lose. With careful planning and a solid strategy, forex trading can be a lucrative way to invest your 100k in Australia.
2. Binary Options
WE DO NOT RECOMMEND TRADING BINARY OPTIONS
While not a specific as the on above. Binary Options is more of a trading mechanic compared by many to gambling – however as with most things, being well informed and using your head to spot the safe and the dangerous investments is the key thing to keep in mind.
It is well known that Binary Options are a high-risk high-reward system and to people who fail to spot the right signs may seem like a simple gamble.
When it comes to the mechanics of the system itself – they’re quite simple actually, you either invest in the fact that a stock will gain or lose value – it’s all or nothing.
3. Index Funds
An index fund – much like the above-mentioned Binary Options is a mechanic or method of trading rather than one specific area of treading – unlike Binary Options the Index Fund is often criticised for it’s lower earnings when compared to other places – this is mostly due to their safe approach to trading.
An Index Fund accepts many people to place their investment in a pool or mutual fund. This money is then put to use.
Specifically, the money is invested into different stocks and securities at rates which are directly linked and directly proportional to their rate of success.
So for example, if Apple is doing better than Android – Apple stocks will receive a higher percentage of the fund than Android.
That said technically every stock and security is bought in some capacity this is to avoid outliers and unpredictable outcomes.
Index funds seek to replicate the performance of a market index, such as the S&P/ASX 200 in Australia, rather than trying to beat it through individual stock selection.
By investing in an index fund, investors can gain exposure to a broad range of companies within the index and benefit from their collective growth.
In Australia, there are various types of index funds available, including exchange-traded funds (ETFs), managed funds, and superannuation funds.
ETFs are traded on the stock exchange like individual stocks and offer a convenient way to invest in a diversified portfolio of stocks with low management fees.
Managed funds, on the other hand, are actively managed by professional fund managers who aim to outperform the market index by selecting specific stocks.
Superannuation funds are long-term investment vehicles designed to provide retirement benefits to members, which often include a range of index funds.
When selecting an index fund to invest in, it is important to consider factors such as the fund’s management fees, track record, and the specific index it seeks to replicate.
For instance, some index funds may track a specific sector or market, such as technology or emerging markets, while others may track the entire market.
Overall, while index funds may not offer the same potential for high returns as some riskier investments, they provide a relatively safe and easy way for investors to diversify their portfolio and participate in the growth of the market.
4. Stocks (Manually)
If you want to trade stocks manually – as in seeing which stocks are going up and which ones are falling- that could make you a lot of money.
There is a high risk as expected from the high rewards. In general, it’s safe to say that inexperienced traders should stay away from manual stock trading. Stay away, especially with a sum a large as 100k.
If you are willing to put up with the risk and are confident in your skills it might be the investment method for you.
When it comes to investing in stocks, there are a few important things to keep in mind. First and foremost, it’s important to do your research and stay informed about market trends and the performance of individual stocks.
This requires a lot of time and effort, and you’ll need to stay up to date on financial news and events that could impact your investments.
It’s also important to diversify your portfolio by investing in a variety of different stocks. This can help to reduce your risk and increase your chances of success.
You might consider investing in a mix of large-cap and small-cap stocks, as well as stocks from different sectors and industries.
Another key consideration is your investment time horizon. If you’re investing with a long-term perspective, you may want to focus on stocks with strong fundamentals and the potential for steady growth over time.
On the other hand, if you’re looking for short-term gains, you may want to focus on stocks that are more volatile and have the potential for larger returns in a shorter period of time.
When it comes to actually buying and selling stocks, there are a few different options available to you. You could work with a traditional stockbroker, who will charge you a commission for each trade you make.
Alternatively, you could use an online brokerage platform, which may offer lower fees and a more user-friendly experience.
Finally, it’s important to remember that investing in stocks comes with risks. There is always the possibility that you could lose money, particularly if you’re not well-informed or experienced in the market.
Make sure you’re comfortable with the level of risk involved before you invest any money.
5. Cryptocurrencies
I know a lot of people don’t trust cryptocurrencies. After all, it’s hard to believe that thousands or tens of thousands of your hard-earned money is on a server that could break, be hacked or even be turned off by the creator.
It’s important to keep in mind that cryptocurrencies are a dime a dozen and while not all are legitimated most are.
You won’t see me investing 100k in doge-coin any time soon but Bitcoin, Ethereum, Litecoin. These are all legitimate currencies that have a big enough market to earn you money.
As with all investments, it’s easy to take a look at Bitcoin and immediately decide you’re not going to become a millionaire any time soon. Patience is key.
6. Real Estate
That’s the second oldest thing you probably heard being invested in – the first is gold.
But why should you invest in real estate – are you really going to make a lot of money from it?
It’s important to keep in mind the fact that real estate is no different from other forms of investment. The value of a building rises and falls as trends and businesses rise and fall.
A skilled trader can spot the trends and predict when the real estate will be worth the most. He invest in it when it’s worth the least.
Conclusion
How should you invest your 100k? I hope I answered that.
Yes I didn’t give you a definitive “Use x site” or “Use x method” answer. That’s because when it comes to trading and investments ever site is different and not every platforms will suite everyone.
That part is obvious due to the sheer number of trading sites out there.
Personally, Forex and Index funds are the things for me – they’re safe and profitable.