What are some passive investing ideas in Australia?
Passive investments seem to have really taken off in Australia, and if you’re looking for a piece of the action, now is the time. With the pandemic of 2020 and multiple lockdowns, everyone is looking for alternative opportunities.
What is a passive investment?
The term passive investment is simply that – you generate income without actively needing to do anything. Sounds pretty ideal, right?
Some examples of passive investment include:
- Accumulating interest in a term deposit
- Rental income from an investment property
- Dividends from investment stocks
The big catch with passive investments is that they generally require upfront capital – such as a lump sum or extensive labour. But once everything is in place, you can just sit back and hopefully reap the benefits – that’s the beauty of it.
Whether you’re looking to invest 10K, 50K or 250K in Australia, you may want to start dabbling in passive investment opportunities.
Below are a few options for you to consider when exploring popular ways to invest in Australia.
Exchange-traded funds (ETFs)
Their objective is to outperform a specified index like the ASX300, so you will need to be prepared to see your investment fluctuate over the investment period.
Managed investment funds
If you’ve got around 20K or more, you may want to look at managed investment funds. These funds are overseen by professional investment expertise and are all about diversification.
You can choose to invest in shares, property or bonds while accessing professional advice on what and when to buy or sell. This is an excellent option if you’re new to the market and want to have someone with professional know-how helping you along the way.
We all know the story of property, the upfront capital required is much greater than that of an ETF or managed investment fund. But there is no doubt, an investment property in the right economic climate can provide a fantastic passive investment.
If you gather together a 20% deposit or pool money with friends or family, an investment property might be your next passive investment opportunity.
Save time and money with Robo-advisors
There are many different ways to make passive investments in Australia. The option you ultimately choose is mainly dependent on the amount of upfront or disposable capital you can raise. If you are having trouble narrowing down your investment path, one option might be – Robo-advisors
Using formulas, Robo-advisors can provide a time-saving approach to finding the ideal passive investment opportunity. Often, all you have to do is input some information into an online application and you will be provided with a financial guide that should suit your situation.
The other advantage of Robo-advisors is that they provide services at affordable prices.
A Robo-advisor may be the next opportunity for those just starting out or even veterans looking to try something new.
Unhedged is a special Robo-advisor that uses advanced algorithms to create your portfolio. Unhedged makes decisions leaving emotions behind, and instead provides an investment strategy, rather than advice, that can help attain your financial goals.
Products issued by Melbourne Securities Corporation (MSC). Please consider the PDS and TMD available on our website before applying. All investments carry risks and you may lose your money. Past performance is not indicative of future performance. The information in this report has been compiled from sources we believe are reliable and we make no warranty in respect of its accuracy.