G’day, savvy investors and curious newbies!
Ever wondered where your fellow Aussies are stashing their hard-earned cash? Well, grab a cuppa and settle in, because we’re about to take a deep dive into the top 20 investments that have caught the eye of Australian investors from Bondi to Broome.
Whether you’re a truckie looking to secure your family’s future or a high-flying professional aiming to diversify your portfolio, this guide’s got something for everyone.
We’ll break down the numbers, give you the lowdown on each investment type, and even point you in the right direction to get started.
So, let’s cut through the financial jargon and get down to brass tacks, shall we? If you need an easier entry point to investing, check out our “Simple Investing Tips” first.
Understanding the Data on Australian Investors
Before we jump in, a quick word on the numbers you’re about to see. The percentages represent the proportion of Australian Investors participating in each investment type, while the estimated totals give you an idea of just how many of us are in on the action. Keep in mind that these figures can dance around a bit, depending on market conditions and economic factors. Think of them as a snapshot rather than set-in-stone facts.
Now, without further ado, let’s dive into the top 20!
1. Superannuation Contributions
Percentage: 90%
Estimated Total Australian Investors: 23.4 million
Explanation: Superannuation is a mandatory retirement savings system in Australia. Employers contribute a percentage of an employee’s earnings into a super fund, which is then invested to grow over time. It’s designed to provide financial security in retirement.
Key Benefits:
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- Tax advantages on contributions and earnings
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- Compound growth over the long term
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- Forced savings for retirement
Where to Start:
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- AustralianSuper: One of the largest super funds in Australia, known for its low fees and strong performance.
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- Hostplus: Popular among younger Australians, offering a range of investment options.
- Read our article on how to maximise your super.
2. High-Interest Savings Accounts
Percentage: 60%
Estimated Total Australian Investors: 15.6 million
Explanation: These accounts offer higher interest rates than standard savings accounts, allowing your money to grow faster while remaining easily accessible.
Key Benefits:
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- Higher interest rates than regular savings accounts
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- Low risk and high liquidity
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- Often no fees or minimum balance requirements
Where to Start:
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- ING Savings Maximiser: Offers competitive interest rates with no monthly fees.
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- UBank: Known for high interest rates and user-friendly online banking.
- Read: our article on making the most of automated payments into HISA.
3. Real Estate
Percentage: 20%
Estimated Total Australian Investors: 5.2 million
Explanation: Real estate investment involves purchasing property to generate rental income or capital appreciation. It’s a tangible asset that can provide both regular cash flow and long-term wealth growth.
Key Benefits:
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- Potential for both rental income and capital growth
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- Tax benefits through negative gearing and depreciation
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- Hedge against inflation
Where to Start:
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- Domain: A comprehensive property listing site with market insights and research tools.
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- Realestate.com.au: Australia’s largest property portal, offering listings, market data, and investment calculators.
- OneCorp Australia: Our property acquisition arm where we locate, coordinate, and support your investment journey.
4. Dividend Stocks
Percentage: 35%
Estimated Total Australian Investors: 9.1 million
Explanation: Dividend stocks are shares in companies that regularly distribute a portion of their profits to shareholders. These stocks provide a steady income stream in addition to potential capital appreciation.
Key Benefits:
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- Regular income through dividend payments
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- Potential for long-term capital growth
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- Often associated with more stable, established companies
Where to Start:
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- CommSec: Australia’s largest online broker, offering comprehensive research and trading tools
- Nabtrade: Provides access to Australian and international markets with competitive fees
5. Exchange Traded Funds (ETFs)
Percentage: 25% Estimated
Estimated Total Australian Investors: 6.5 million
Explanation: ETFs are investment funds traded on stock exchanges, offering diversification by tracking a specific index, sector, or asset class.
Key Benefits:
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- Instant diversification across multiple stocks or assets
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- Lower fees compared to many managed funds
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- Ability to buy and sell easily on the stock exchange
Where to Start:
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- Vanguard Australia: Known for low-cost, broadly diversified ETFs
- BetaShares: Offers a wide range of Australian and global ETFs, including thematic and sector-specific options
6. Managed Funds
Percentage: 30%
Estimated Total Australian Investors: 7.8 million
Explanation: Managed funds pool money from multiple investors, with professional fund managers making investment decisions on their behalf.
Key Benefits:
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- Professional management of investments
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- Access to a diverse range of assets
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- Potential for higher returns through active management
Where to Start:
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- Morningstar: Provides comprehensive fund research and ratings
- InvestSMART: Offers a range of managed funds with a focus on low fees
7. Term Deposits
Percentage: 40%
Estimated Total Australian Investors: 10.4 million
Explanation: Term deposits offer a fixed interest rate for a set period, providing a guaranteed return if held to maturity.
Key Benefits:
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- Guaranteed returns
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- Low risk investment
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- Fixed terms to suit different investment horizons
Where to Start:
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- NAB: Offers competitive rates and flexible term options
- ANZ: Provides a range of term deposit products with varying interest payment frequencies
8. Blue-Chip Stocks
Percentage: 45%
Estimated Total Australian Investors: 11.7 million
Explanation: Blue-chip stocks are shares in large, well-established companies with a history of stable performance and often regular dividend payments.
Key Benefits:
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- Stability and reliability
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- Often pay regular dividends
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- Potential for long-term capital growth
Where to Start:
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- CommSec: Offers extensive research on blue-chip stocks
- SelfWealth: Provides flat-fee trading and access to community insights
9. Government and Corporate Bonds
Percentage: 25%
Estimated Total Australian Investors: 6.5 million
Explanation: Bonds are debt securities where investors lend money to governments or corporations in exchange for regular interest payments and the return of principal at maturity.
Key Benefits:
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- Regular income through interest payments
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- Generally lower risk compared to stocks
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- Government bonds offer very high security
Where to Start:
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- Australian Government Bonds: Direct investment in government securities
- CommSec Bonds: Offers access to a range of corporate and government bonds
10. Investment Properties
Percentage: 15%
Estimated Total Australian Investors: 3.9 million
Explanation: Investment properties are real estate purchased specifically to generate rental income or capital gains, often with tax benefits.
Key Benefits:
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- Potential for both rental income and capital appreciation
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- Tax benefits through negative gearing and depreciation
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- Tangible asset that can be leveraged
Where to Start:
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- Domain: Comprehensive property listing site with market insights
- Realestate.com.au: Australia’s largest property portal with extensive listings and investment tools
11. Cryptocurrencies
Percentage: 15%
Estimated Total Australian Investors: 3.9 million
Explanation: Cryptocurrencies are digital or virtual currencies that use cryptography for security, operating independently of central banks.
Key Benefits:
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- Potential for high returns
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- Decentralized nature, free from government control
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- Growing acceptance as a form of payment
Where to Start:
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- CoinSpot: Australian-based exchange with a wide range of cryptocurrencies
- Coinbase: Global platform known for its user-friendly interface
12. Real Estate Investment Trusts (REITs)
Percentage: 10%
Estimated Total Australian Investors: 2.6 million
Explanation: REITs are companies that own, operate, or finance income-producing real estate, allowing investors to access real estate returns without directly owning property.
Key Benefits:
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- Regular income through dividends
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- Exposure to real estate without direct property management
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- Liquidity compared to physical property investments
Where to Start:
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- ASX REITs: Direct investment in REITs listed on the Australian Securities Exchange
- Vanguard REIT ETF: Offers broad exposure to the REIT market
13. Small-Cap Stocks
Percentage: 20%
Estimated Total Australian Investors: 5.2 million
Explanation: Small-cap stocks are shares in companies with a relatively small market capitalization, often offering higher growth potential but with increased risk.
Key Benefits:
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- Potential for high growth
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- Often overlooked by large institutional investors
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- Can provide portfolio diversification
Where to Start:
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- Nabtrade: Offers research and trading capabilities for small-cap stocks
- CMC Markets: Provides access to a wide range of small-cap stocks with competitive fees
14. Sustainable and Ethical Investing
Percentage: 8%
Estimated Total Australian Investors: 2.08 million
Explanation: This approach involves investing in companies that meet specific environmental, social, and governance criteria, aligning investments with personal values.
Key Benefits:
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- Alignment of investments with personal values
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- Potential for long-term sustainable returns
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- Contributing to positive social and environmental impact
Where to Start:
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- Australian Ethical: Offers a range of ethical investment options
- Ethical Investment Advisers: Provides guidance on creating an ethical investment portfolio
15. Gold and Precious Metals
Percentage: 7%
Estimated Total Australian Investors: 1.82 million
Explanation: Investing in gold and other precious metals can serve as a hedge against inflation and economic uncertainty.
Key Benefits:
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- Hedge against inflation and currency fluctuations
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- Safe-haven asset during economic uncertainty
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- Tangible asset with intrinsic value
Where to Start:
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- Perth Mint: Offers physical gold and silver products as well as storage options
- BetaShares Gold ETF: Provides exposure to gold price movements without holding physical gold
16. Robo-Advisors
Percentage: 10% Estimated
Estimated Total Australian Investors: 2.6 million
Explanation: Robo-advisors use algorithms to provide automated, low-cost investment management services.
Key Benefits:
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- Low-cost investment management
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- Automated portfolio rebalancing
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- Accessible to investors with smaller amounts to invest
Where to Start:
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- Stockspot: Australia’s largest robo-advisor, offering diversified portfolios
- Raiz: Micro-investing app that rounds up everyday purchases and invests the difference
17. Peer-to-Peer Lending
Percentage: 5%
Estimated Total Australian Investors: 1.3 million
Explanation: P2P lending platforms connect borrowers directly with investors, often offering higher returns than traditional savings accounts.
Key Benefits:
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- Potential for higher returns compared to traditional savings
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- Diversification across multiple loans
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- Control over lending criteria and risk levels
Where to Start:
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- RateSetter: One of Australia’s largest P2P lending platforms
- SocietyOne: Offers personal loans and investor opportunities
18. Annuities
Percentage: 5%
Estimated Total Australian Investors: 1.3 million
Explanation: Annuities are financial products that provide a regular income stream for a specified period or for life, often used in retirement planning.
Key Benefits:
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- Guaranteed income stream
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- Protection against outliving savings
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- Option for inflation-adjusted payments
Where to Start:
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- Challenger: Australia’s largest annuity provider
- AMP: Offers a range of annuity products for different needs
19. Venture Capital and Angel Investing
Percentage: 3% Estimated Total Investors: 780,000
Explanation: This involves investing in early-stage companies with high growth potential, typically carrying high risk but the possibility of significant returns.
Key Benefits:
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- Potential for very high returns
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- Opportunity to support innovative startups
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- Portfolio diversification
Where to Start:
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- VentureCrowd: Online platform for venture capital investments
- Australian Investment Network: Connects entrepreneurs with angel investors
20. Infrastructure Investments
Percentage: 5%
Estimated Total Australian Investors: 1.3 million
Explanation: Infrastructure investments involve putting money into essential public assets like roads, bridges, or utilities, often providing stable, long-term returns.
Key Benefits:
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- Stable, long-term cash flows
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- Often inflation-linked returns
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- Lower correlation with traditional asset classes
Where to Start:
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- IFM Investors: Global fund manager specializing in infrastructure investments
- Macquarie Infrastructure Fund: Offers exposure to a diversified portfolio of infrastructure assets
Key Takeaways
If there’s one thing this list shows, it’s that Aussies love a diverse investment portfolio almost as much as they love a diverse sausage sizzle selection.
From the safety of high-interest savings accounts to the thrill of cryptocurrency, there’s something for every risk appetite and financial goal.
Remember, the key to smart investing isn’t just picking the most popular options. It’s about finding the right mix that aligns with your personal goals, risk tolerance, and life stage.
Whether you’re a young tradie looking to get a foot on the property ladder or a seasoned professional aiming to boost your retirement savings, there’s a strategy out there for you.
Conclusion
There you have it, folks – a whirlwind tour of where Australians are putting their hard-earned dollars. Whether you’re just starting out or looking to shake up your existing portfolio, this list should give you plenty of food for thought.
But here’s the thing – while knowing where others are investing is a great starting point, it’s not a one-size-fits-all solution. Your financial journey is as unique as your coffee order, and it deserves a tailored approach.
That’s where we come in. At OneBudget, we’re passionate about helping everyday Australians navigate the sometimes murky waters of investment. We don’t just throw jargon at you and expect you to swim – we’re here to be your financial lifeguard, guiding you towards the investments that make sense for your personal situation.
Ready to take the plunge into smarter investing? Why not reach out for a chat? We promise we won’t bite (unless you’re a particularly tasty-looking investment opportunity, that is).
Remember, the best investment you can make is in your own financial education. So keep learning, keep asking questions, and most importantly, keep working towards that financial freedom you deserve.
After all, the only thing better than a diverse investment portfolio is the peace of mind that comes with it.
Disclaimer: The information provided in this article is general in nature and does not constitute financial advice. Always consult with a licensed financial advisor before making investment decisions.
