How to invest money correctly?

G'day everyone.

I am just wondering, I am looking at investing some money. It's only going to be about $5000.

Just wondering if anyone has any tips or anything on how to invest money correctly?

I heard many banks have a specific bank type which is like a High Interest Account. What are they exactly and how do they work?

Just to let everyone know I am living in Australia. So I am looking for some Australians to reply but if you are from another country I am still willing to read what you think.

This is very much appreciated.

Take care and enjoy,

Brandon

3 Answers

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  • 1 decade ago
    Favorite Answer

    I don't know much about Australians markets, but the concepts should be in theory cross applicable.

    Diversify..period

    In our financial modeling classes the professor always drove home this point. Before you find out anything find out the person's sigma, which is basically how much risk you want to take on.

    Diversifying if your a fund manager versus just an individual investor can take on different meanings. As an individual investor, I would read the prospectus of different mutual funds and find out the 5yr, 10yr returns. They will tell you a lot about how much risk you are taking on too.

    Also consider how long you are going to be in the market. If you are young and your in for the long haul, I'd put it in some fairly more risk assets then If I were older.

    Vanguard is a low cost mutual fund provider. I would recommend checking them out

    Source(s): 4 years of undergrad
  • Anonymous
    1 decade ago

    i have invested over 100k in asset management , made 3% to 10% monthly, they have 5 years in market ,The trader have only the Power of Attorney and i can revoke it whenever i want and i watch the trader job 24 hours daily by platform online. i'm happy to make money with them safely. great and wonderful , take a look what i have shared with you.Recommended ! Good Luck!

  • Anonymous
    1 decade ago

    Diversify your investment.

    (A proverb says, " Don't lay all eggs in a single basket".)

    Buy some gold.

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