Investment Basics

Giving Perth investors the advice they need

Investments generally fit into one of four main categories:

• Cash - such as money in the bank
• Fixed interest - such as bonds
• Property - such as residential rental investments and investments in commercial or industrial property trusts
• Shares
  

The first two categories could be described as Defensive Investments, while the last two are Growth Investments.

What are the features of Defensive Investments?

Defensive Investments are designed to provide income, but generally do not experience any capital growth.

With Defensive Investments you can usually expect:

• Lower returns compared to Growth Investments over the medium to long term
• Only slight fluctuations in investment returns
• A lower risk than growth investments

What are the features of Growth Investments?

Investment properties and shares are Growth Investments because they value of the investment is expected to grow, whilst also providing returns.

Growth Investments features include:

• Growth in the value of capital invested, as well as income
• A fluctuation in investment returns
• A tendency to produce higher returns than Defensive Investments

It is essential to understand the potential, as well as the risks, of any proposed investment prior to committing your funds. It is best to talk over your plans with a trusted financial advisor or accountant.

Lifespan Mortgage Services' qualified mortgage brokers can help you find the right advice while researching your next investment.

Make an appointment by filling in an online form or phone 08 9317 1900.