Markets have been volatile in 2022. There’s no getting around that. Interest rates are up. Inflation is at multi-decade highs. And stocks – whether blue-chips or meme stocks – are down across the board.
Despite that, Australian investors are still keen to get involved in the markets and invest over the next few years.
According to a recent Syfe survey which examined the investment habits of 1,019 Australians, local investors are considering investing in everything from US shares to crypto – over the next 1 to 5 years.
Based on that research, below we rank the top 10 investments that Australians said they were considering making over the next 1 to 5 years – expressed as a percentage of the +1,000 people Syfe surveyed.
Top 10 investments Aussie investors are considering
- Australian Shares
- Exchange Traded Funds (ETFs)
- International Shares
- Cryptocurrency
- Investment property
- Australian bonds
- Gold
- Managed funds
- International bonds
- Retirement funds / savings
#1 Australian Shares – 55.1%
Over half of the investors (561) we surveyed said they were considering investing in Australian shares – like Rio Tinto, the Commonwealth Bank of Australia, and Woolworths – over the next 1 to 5 years.
#2 Exchange Traded Funds (ETFs) – 37.5%
Given the ease in which ETFs or Exchange Traded Funds allow investors to quickly, simply, and cheaply diversify their investment portfolio – the fact this investment type is number two on this list should hardly come as a surprise.
ETFs also give investors an incredible range of choice and control over their portfolio, allowing them to invest in everything from green tech, international markets, growth markets, and even dividend stocks – all in one trade.
#3 International Shares – 36.8%
When we think of the best companies in the world – it’s not A2 Milk that comes to mind – but names like Apple, Amazon, and Nike.
Over the last five years, international share markets, like the S&P 500 index, have risen an impressive 43.49%, well outperforming the local ASX 200, which has risen just 14.17% in that same period, to October 20, 2022.
Dig a little deeper into US markets and the winning stocks become even more obvious. For example, since listing in 1985 to September 9, 2022, Monster Beverage saw its share price rise an astounding 71,000%.
#4 Cryptocurrency – 34.3%
Despite uncertainty in the markets, Australians are undeniably crypto curious, with interest in crypto investing coming in just ahead of investment property, according to our investor survey.
Unlike the stock market however, the crypto industry remains slightly less well covered by the mainstream, which is exactly why we recently put together a guide on the top cryptos out there. Check it out for yourself 👇
Top 10 cryptocurrencies to watch in 2022.
#5 Investment property – 33.7%
The total value of residential property in Australia stood at a staggering A$9.5 trillion in the June 2022 quarter, according to the ABS.
But after years of skyrocketing prices, some now expect Australia’s housing market to fall significantly over the next few years. Martin North, CEO of Digital Finance Analytics, expects property prices to plunge 8.8% in 2023 and then continue to keep falling in 2024 and 2025.
#6 Australian bonds – 20.3%
At the time of writing the 10-year Australian government bond had a yield of 4.010%. Long considered a safe haven investment, bonds are known to provide consistent returns to investors.
Given the elevated uncertainty we are currently seeing across the globe, including high inflation and geopolitical instability – it makes sense that investors may find bonds attractive in the current environment.
#7 Gold – 18.5%
Despite often being thought of as a hedge against inflation and uncertainty, the price of gold (in USD) has actually declined 15.56% in the last six months, to 20 October, 2022. Make of that stat what you will.
#8 Managed funds – 16.9%
Similar to ETFs, managed funds are a pooled investment fund overseen by an investment manager. Managed funds can focus on anything from ESG, tech, to property.
Unlike ETFs however, the minimum amounts required to invest are generally higher and given that many are unlisted, trading them is slightly more tricky.
#9 International bonds – 12.4%
As with the popularity of Australian government bonds, with rising inflation and market volatility we’ve seen in recent times, demand for international bonds, like US bonds, is still up there. At the time of writing the US 10-year treasury note boasted a yield of 4.142%.
#10 Retirement funds / savings – 11.8%
Savings might be thought of as a ‘safe’ option by many, but with inflation currently at multi-decade highs, by putting your hard earned dollars in a savings account – you may actually be losing money – in real terms.
Here’s what we mean by that. If your high-interest savings account has returns of 3% but inflation is rising at a rate of 6.8%, in real terms – what you can actually do with your money is decreasing over time.
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Where will you invest next?
With inflation at multi-decade highs, thinking about your approach to investing is more important than ever before.
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This article/webinar is brought to you by Syfe Australia Pty Ltd., CAR number 1295306 of Sanlam Private Wealth Pty Ltd (AFSL 337927). Disclaimer: Investing involves risk including the risk of losing your invested amount. We do not provide personalised advice or recommendations. Any information we provide is general advice and current at the time written. Please speak to your Financial or Tax adviser for personal advice. Any reference to an investment’s past or potential performance is not an indication of any specific outcome or profit.
Cryptocurrency investments available through the cryptocurrency trading services provided by Syfe are not currently regulated as financial products under the Corporations Act 2001 (Cth) or under Australian law. Unlike other trading services offered by Syfe such as that in relation to stocks, the cryptocurrency trading services are not covered under the corporate authorised representative arrangement with Sanlam Private Wealth Pty Ltd (AFSL 337927). This means consumer protections are minimal and you may not be protected if any cryptocurrency which you have invested in fails or any service provider involved in providing you with cryptocurrency fails.
INVESTING IN AND TRADING CRYPTOCURRENCIES INVOLVES RISK. READ OUR CRYPTOCURRENCY RISK DISCLOSURE STATEMENT.
