AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
.jpg)
Highlights
- in times of high inflation, it becomes imperative for investors to protect the purchasing power of money.
- History has proven that equities are by far the best investment option available to investors, as they have time on their side.
- P2P lending is also becoming increasingly popular among young Aussies.
Many young Australians are getting increasingly well aware of the importance of financial stability in life. Especially in times of skyrocketing inflation, it becomes imperative for youngsters to not just protect the purchasing power of money but also to create a corpus that can help them to retire much easily.
Image Source: © 2022 Kalkine Media®
Although, youngsters are more inclined towards splashing out on luxuries and memorable experiences, but for that, merely scrambling to stay ahead on rent or pay bills is not enough. In today’s world, there are numerous investment options to choose from – ranging from very basic to highly complex instruments. However, youngsters are increasingly taking a liking towards some specific investment options. Let us have a look three of the most popular ones.
Read More: Three technical indicators to help gauge market volatility
-
Equities
History has proven that equities are by far the best investment option available to investors and there are so many reasons for it. The inflation-beating returns (over a long period), ease of investment (which nowadays has become completely digital and paperless) and the required amount which could be as low as a few dollars.
Although, one needs to possess some level of skills to screen out profitable investment opportunities in the stock market, but it’s not rocket science. There are many resources available on the internet (and most of these are free). If you have time on your side (which is primarily the biggest asset youngsters have), equities alone could be enough to generate a good chunk of fortune.
-
Cryptocurrency
Cryptocurrencies have become massively popular in the last couple of years. Many youngsters are getting swept by the craze for cryptos, which are capable of delivering massive gains in relatively short span of time.
However, before investing, one also needs to understand all the risks involved in cryptos such as heightened volatility, frequent security lapses resulting in crypto theft, etc.
-
P2P lending
Peer-to-peer (P2P) lending can simply be understood as an individual getting a loan directly from another individual without the interference of any bank or financial institution. P2P lending is becoming increasingly popular among young Aussies as they can earn a decent interest over the lending period, which is generally a bit higher than what a bank gives on a savings account.
Also, platforms such as Plenti, Harmoney, etc. have made the entire process much easier and convenient. One thing to take note of is that this type of lending generally does not involve any guarantees or collateral and therefore is risky.
Bottom Line
There are plenty of investment options available for Australian residents such as equities, bonds, commodities, P2P lending, cryptocurrencies, etc. Every option has its own risk-return profile and every investor must take that into account before investing.
Read More: Fretting over increased market volatility? Here’s what you can do
