Each week across the ACM network Ali and Gaby Rosenberg offer quick tips for big wins in understanding your money. The sisters are co-founders of the Blossom micro-investing app.
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It's been a strange year for Australians and spending this year. In an unpredictable market with cost- of- living pressures, the retail sector inevitably takes a hit. We are dining out much less, which has sadly resulted in the closure of some of our country's most well-known restaurants. So, if we're avoiding impulse shopping and eating out, where is the average Aussie investing their money?
1. Save havens: Saving with high returns
In the context of the current market, it's no surprise that finding lower risk, less volatile places to hold your money gains more traction. Almost every major bank is fuelling this trend with their own high yield savings offering, mostly with returns of around 4-5% p.a. This is significantly higher than your average transaction banking account.
2. Long game: Bonds and Fixed Income
Bonds and other fixed income investments have taken centre-stage this year - for the first time, we've found customers are just as interested in exposure to the fixed income and bonds markets through Blossom as they are compounding returns on their savings. Whilst this type of investing may not bring the thrills, more and more Australians are opting for government and corporate bonds as a way to lock in returns for the long term.
3. The Australian dream lives on: Real Estate
Despite some ups and downs in the market, real estate remains the first choice for many. Whether it's investing in a rental property or buying a home to live in, Aussies are still seeing property as a solid long-term investment.
4. Riding the waves: The Stock Market
The Stock Market has been a bit of a rollercoaster this year, but that hasn't stopped Aussies from getting involved, either via the ASX or by venturing into international markets. Some sectors have suffered this year, but others-like tech and healthcare-have shown strong performance and have brought the wins, if you can handle the ups and downs.
5. The professional touch: Managed Funds
Last, but not least, Managed Funds, which have been around since the late 90s, are becoming an increasingly popular choice. These Funds pool your money with other investors' money and let the professionals do all the heavy lifting. It's a great option if you want to diversify your investments but you don't have the experience (or passion) to manage them yourself.
We're definitely happy to see investors opting for a more balanced approach to investing. This is one of the reasons we created Blossom. With Blossom, investors can save easily, gain access to fixed income investments
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Sisters Ali & Gaby Rosenberg are the co-founders of Blossom App.
- Nothing in this article should be construed as being personal financial advice. It is general in nature only and has not taken into account your particular circumstances, objectives, financial situation or needs. You should consider whether the information, strategies and investments are appropriate and suitable for you or seek personal advice from a licensed financial planner before making an investment decision. Past performance does not indicate future performance. BlossomApp Pty Ltd (ABN 74 644 216 151) is a C.A.R. (No. 001284228) of Gleneagle Asset Management Ltd (AFSL 226199). Consider the PDS and TMD at blossomapp.com to ensure the product suits your needs.
- ACM co-owner Alex Waislitz has a stake in a company that provides services to Blossom. ACM is the publisher of this masthead.
