Available investments refer to a range of financial opportunities where individuals or businesses can allocate their funds with the goal of generating a return. These can include traditional options such as stocks, bonds, and real estate, as well as alternative investments like trusts, managed funds, or private equity. The type of investment chosen often depends on the investor’s risk tolerance, financial goals, and the timeframe for returns.
Investors have a wide variety of options to consider, depending on their risk appetite and financial objectives:
Investing in shares of publicly traded companies allows investors to gain ownership stakes in those companies. Stocks can provide returns through dividends and capital appreciation, but they are also subject to market volatility.
Bonds are debt securities issued by governments, corporations, or other entities. By purchasing bonds, investors essentially lend money to the issuer, who agrees to pay interest and return the principal upon maturity. Bonds are typically considered lower-risk investments compared to stocks, but their returns may also be lower.
Investing in real estate involves purchasing property—either residential or commercial—aimed at generating rental income or capital gains when sold. Real estate is often considered a stable long-term investment.
Managed funds pool money from multiple investors to invest in a diversified portfolio of assets, such as stocks, bonds, and property. These funds are managed by professional fund managers, making them suitable for investors seeking diversification without direct management.
Investment trusts, like property or income trusts, allow investors to gain exposure to a specific asset class or sector, such as real estate, infrastructure, or renewable energy. These trusts pool funds and provide regular returns to investors, often in the form of dividends.
Private equity investments involve purchasing shares in private companies or participating in private company buyouts. These investments can offer high returns but are generally illiquid and riskier than public equities.
Each type of investment comes with its own level of risk. Stocks and private equity, for example, offer the potential for high returns but can also experience significant volatility. Conversely, bonds and real estate may offer more stability but with lower potential returns.
Investors should consider how long they plan to hold their investments. For short-term goals, more liquid options like stocks or managed funds may be suitable. Long-term goals may allow for less liquid options, such as real estate or private equity.
Are you looking to generate income, preserve capital, or achieve growth? Your financial objectives will influence the type of available investments best suited to your needs. For example, bonds and income trusts are often chosen by those seeking steady income, while growth-focused investors may lean toward stocks or property development.
Investing in a mix of asset types can help mitigate risk. Diversification across different investment categories—such as stocks, bonds, real estate, and managed funds—can reduce the impact of volatility in any single asset class.
An Australian investor looking for steady, reliable income chooses to invest in an income trust that specialises in property development. The trust pools investor funds to finance property projects, and the investor receives regular dividend payments from the profits of those developments. This option allows the investor to gain exposure to the property sector without directly managing a real estate portfolio.
Whether you’re looking for growth, income, or stability, the right investment can help you achieve your financial goals. At Funding, we provide a range of investment opportunities, including the Funding Investment Trust and the Funding Income Trust. Explore how these options can support your wealth-building journey.
DISCLAIMER: The information provided on this page is for general informational and educational purposes only and is never intended as financial advice. While we strive to ensure that the content is accurate and up-to-date, it may not reflect the most current legal or financial developments. Always consult with a qualified financial advisor or professional before making any financial decisions. Use the information at your own risk.
