Building your wealth:

The strategy that’s best for you will depend on your financial goals, on your values and attitudes to money, the amount you have to invest and your attitude to risk. The goal of diversification is to reduce risk in a portfolio. Your investment strategy must be designed to reduce exposure to risk by combining a variety of investments, such as stocks, bonds, and real estate, which are unlikely to all move in the same direction.Some of the most popular investments and wealth creation strategies include:



Includes bank deposits, term deposits, savings accounts and cash management trusts


  • Suitable for investors who have a short term outlook, a low tolerance to risk, or if market volatility is high.
  • Provides a stable and low risk income, usually equally in the form of regular interest payments
  • No recommended minimum timeframe
  • Low risk
  • Low returns


Fixed interest:

Includes government bonds, corporate bonds, mortgages and hybrid securities


  • Can be more volatile than cash, but are still relatively stable.
  • Generally operate in the same way as a loan.
  • Income return is usually in the form of regular interest payments for an agreed period of time.
  • Minimum suggested time frame: 1 – 3 years
  • Low/Moderate risk
  • Moderate returns



Includes direct investments in residential, industrial and commercial property and can also include indirect investment in listed property vehicles such as Real Estate Investment Trusts.


  • Higher risk than fixed interest, less than equities.
  • Less liquid than other asset classes
  • Entry and exit costs significantly higher.
  • Minimum suggested timeframe: 7+ years
  • Moderate/ High risk
  • Moderate/ High returns



Includes Australian and International shares


  • Returns usually include capital growth or loss and income through dividends.
  • Among the most volatile asset
  • Involves part ownership of a company, enabling investor to share in the profits and future growth.
  • Currency valuations can affect performance of International equities.
  • Minimum suggested timeframe: 5 – 7 years
  • High risk
  • High returns


Put more into your Super.

Superannuation is a tax-effective vehicle for retirement savings for most Australians. With superannuation retirement income being tax-free for the over 60s, it’s even more attractive for investors who are happy not to access their cash until retirement.

Your super balance can be invested in the same sorts of assets that you can invest in outside of super (such as shares, property and fixed interest). Your choice of assets will depend on your risk preference.