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Investment
Wealth Accumulation through savings and investment is an important pillar in financial planning services.
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If you are an individual investor is likely that you are familiar with the infinite number of the different types of investment available.
For the new individual investors, negotiating their way through the different investment vehicles can be a challenge. Should you invest in stocks? Should you invest in real estate? Perhaps you should invest in mutual funds.
Those are few different types of investments that are available to choose from. We’ll give you a brief synopsis of a number of other types of investment that you might consider. As always, make sure that you check with your financial advisor before investing in any type of investing model.
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| Investment Type | Benefits |
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| Stocks | Stocks are essentially investments in a specific publicly traded corporation. Publicly traded companies issue shares of their stock to the general public. This is generally considered a high risk-investing model, but can be very rewarding financially. Stocks offer growth to investors in two key ways: As the overall value of the company increases, the value of your shares also increases. Companies can also elect to pay part of their profits to shareholders as an income payment, rather than reinvesting all profits back into the company. These income payments are known as “dividends”. One of the major advantages of dividends is that they can be very tax effective. Stocks are generally best suited to investors who: Want to build up a solid nest egg for medium and long term savings goals, have a longer investment timeframe (5-7 years +) and comfortable with some volatility in their investment value over the short-term, in exchange for higher returns over the long-term. |
| Bonds | Investing in bonds is essentially were loans are made to corporations and governments by investors. The corporation or government then makes fixed interest payments to the bond investor or a set period of time, called the term. At the end of the term, the investor gets back the original investment amount, called the principle. Investing in bonds is generally considered a more moderate form of investing. |
| Managed funds | Managed funds are investments that pool money from many investors and invest it in a specific set of stocks and bonds. Professional fund managers decide what percentage of the fund should be invested in each asset class, and also which countries, industries and companies have the best prospects for good returns. The managed fund investor in turn, owns shares in a managed fund and profits from the expertise of the professionals. Managed funds can be considered low risk investments to very high risk investments. It depends on which managed fund you choose in which industry sector you want to commit your resources to. Every investor needs to define who they are as an investor and develop in investing style that mirrors their own personality and goals. Managed funds are an ideal option for people who are: New to investing, happy to outsource the selection of investments to professional manager/s, have a small initial amount to invest (with the option to make regular additional contributions), seeking investment diversification to minimise risk. |
| Property | Property investment offers value to investors in two ways. Properties increase in capital value over time as house and land prices rise, and also can earn rental income from tenants. Property prices fluctuate and have periods of sustained high returns and sustained low returns, so property is generally only suitable as a long-term investment. Property is generally best suited to investors who: Don’t require “emergency” access to their money, have a long-term investment timeframe (5-7 years +), have the ability to meet mortgage repayments in the event that interest rates rise or when they have difficulty finding tenants. |
Investment service is amounting Billion Dollar business opportunity. eAuuscar.com aims to build a recurring Asset Under Management (AUM) for advisor to build long term passive income. We have built an online tool for advisor to access investment portfolio and accessibility 24x7 borderless.
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