Asset classes
Asset classes are divided into income and growth investments. Growth asset classes include Australian and international shares and property investments. While growth assets have higher risk than income assets, they usually provide higher returns and outpace inflation over the longer term.
Income assets like fixed interest and cash generally provide a regular income stream and lower, more stable returns.
| Growth asset classes |
Attributes |
More information |
| Property securities |
- for medium to long-term investors (five years plus)
- lower risk growth asset than shares
- returns include income and capital growth
- diversification benefits with access to properties in retail, office, industrial, tourism and infrastructure sectors
- access Australian and international property security markets
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Property basics
Investing for income Plain Talk guide |
| Australian shares |
- for long-term investors (seven years plus)
- potential for higher returns with higher risk
- potential for income through payment of dividends and tax benefits in the form of dividend imputation
- access a diversified range of companies listed on the Australian Stock Exchange
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Sharemarket basics
Realistic sharemarket expectations Plain Talk guide
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| International shares |
- for long-term investors (seven years plus)
- potential for higher returns with higher risk
- access industries and investment opportunities not available in Australia
- diversification benefits when investing in a range of countries, industries and companies
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Investing overseas
Realistic sharemarket expectations |
| Income asset classes |
Attributes |
More information |
| Cash |
- for short-term investors
- lowest risk of all asset classes
- can provide a steady and reliable income stream, liquidity and stable returns
- usually includes higher interest paying securities than bank accounts or term deposits
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Cash basics
Investing for income Plain Talk guide |
| Fixed interest |
- for short to medium-term investors (around three to five years);
- low to medium risk
- can provide a steady and reliable income stream and potential for capital growth
- usually offer a higher interest rate, or yield, than cash
- access Commonwealth Government, state governments, semi-government authorities and company debt from Australia or overseas
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Fixed interest basics
Investing for income Plain Talk guide
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More investment basics