Choose your investments

Last updated: 17 September 2026

Get an overview of the different types of investments and ways to invest.

Action list: How to choose your investments 

Before you invest, research each investment and ask: 

• How does it work, and how could you make or lose money? 
• How can you sell or withdraw your investment, and how long could this take? 
• What fees and other costs will you pay to buy, hold and sell it? 
• Does it suit your goals and give you money when you need it? 
• How much money could you lose, and could you afford that loss? 

Before you invest, read the information provided with the investment. This may include a Product Disclosure Statement (PDS) or another offer document. Use this information to check how the investment works, its risks and fees, and any rules, costs or delays for selling or withdrawing. If you don't understand the investment, wait before investing. Ask questions or consider getting financial advice.

Types of investments 

To invest well, you need to find investments that fit your financial goals, investing time frame and risk tolerance. 

The potential to earn more usually comes with a greater risk of loss. Taking more risk does not guarantee you will earn more. No investment is completely risk-free. 

Two common groups are defensive investments and growth investments.  

Spreading your money across different types of investments means you are generally less reliant on any one investment. It does not remove the risk of losing money. See diversification for more on spreading your money across different investments. 

Defensive investments

Defensive investments aim to protect the money invested, provide income, or both. They generally have lower potential returns over the long term than growth investments. Examples include cash and some bonds. You can still lose money. 

You may consider holding more defensive investments if: 

• you'll need the money soon 
• you could not afford a large fall in value  
• you prefer smaller changes in value 

Check the particular investment carefully. Being described as defensive does not always mean you can withdraw your money whenever you need it. The timeframes below are a general guide. They do not guarantee that an investment will make money or recover from a fall in value. Separately, check how long selling or withdrawing could take. 

Investment examples	Characteristics	Risk and investing time frame
Cash	Includes bank accounts, high interest savings accounts and term deposits. Bank deposits do not rise and fall in price like shares. They may earn interest. Term deposits hold your money for an agreed period, and early withdrawal may involve notice, costs or reduced interest.	Risk: very low risk of losing money. However, rising prices may reduce what your money can buy over time.   Time frame: often used for short-term goals, such as within 3 years. Cash can also form part of a longer-term investment mix.
Some bonds	You lend money to a government or company for a set period.  In return, you usually receive regular interest payments.    Whether a bond is a defensive investment depends on the borrower's ability to repay.	Risk: Depends on the borrower and the bond’s terms. The borrower may fail to pay interest or repay your money. Bond prices can fall when interest rates rise. If you sell a bond before repayment is due, you may receive less than you paid. Time frame:  Depends on when repayment is due and whether you can sell earlier.

Growth investments

Growth investments aim to increase in value over the long term. They may also provide income, such as dividends or rent. 

Growth investments may suit longer-term goals if you can leave the money invested and cope with larger falls in value along the way. 

Investment	Characteristics	Risk and investing time frame
Property	Includes residential or commercial property.  You may receive rent. The property may rise or fall in value. Rent may not cover loan repayments and other property costs.	Risk: You can lose money if property prices fall or costs exceed rental income. Selling can take time and may be expensive. Borrowing increases the financial risk.  Time frame: Generally suited to goals at least 5 years away. You may need to stay invested longer.
Shares	Buying a share means owning a small part of a company.  You may be able to vote on how the company is run.  You may also receive income payments, known as dividends, but these are not guaranteed.  The value of your shares can rise or fall.	Risk: Share prices can fall quickly, and dividends may fall or stop. The risk depends on the companies you choose and how widely you spread your money.   Time frame: long term, at least 5 years

Other types of investments

Some investments are more difficult to understand and may have additional risks. These include private equity, private credit, infrastructure and commodities. Before investing, make sure you understand how the investment works, when you can get your money back and how much you could lose. See complex investment products for more information.

Ways to invest

You can buy investments directly, through a fund or through super. You can also use more than one approach.

Buy investments directly 

You can buy some investments yourself. For example, you can buy shares through the Australian Securities Exchange (ASX).  

Buying investments yourself gives you control over which investments you buy and sell. You are responsible for choosing investments, keeping records and tracking their performance. 

This can be cheaper than paying someone to invest for you. But you need to understand the risks, fees, tax and how long you may need to keep the money invested. 

Examples of investments you can buy directly include: 

• listed company shares 
• government and corporate bonds 
• bank deposits and savings accounts 
• property 

Use a managed fund or ETF 

Investments like managed funds, exchange traded funds (ETFs), listed investment companies and listed investment trusts pool your money with money from other investors, and invest on your behalf.  

Some funds hold one type of investment, such as shares. Others hold a mix of different investments.  

Invest through super 

Superannuation is money invested for your retirement. Most people who work in Australia receive super contributions from their employer.  

Your super fund invests the money for you. You can choose how it is invested. If you don’t choose, your fund puts your money into its MySuper option. 

Decide how you'll invest

When it comes to investing you need to decide whether you'll:

• do it yourself, or
• pay a professional to do it for you

Both options have their pros and cons — and you can, of course, do both.

Buy and sell investments yourself

The advantage of investing yourself is that you're in control of all the decisions. It can also be cheaper than paying someone to invest your money. The risk is that you may overrate your expertise and may not understand the risks, fees, tax implications and timeframe of what you’re investing in.

If you invest directly, it's important to plan and put in the time to research your investments. You should also keep track of how they're performing.

Use a professional investment manager

If you invest in a managed fund, some managed accounts, exchange-traded fund (ETF) or a listed investment company (LIC) your money is pooled with other investors. A professional investment manager then buys and sells investments on your behalf.

When you use a professional, you benefit from their skills and knowledge to make investment decisions. But you have to pay fees for this service. These can include management fees, administration fees and entry and exit fees.

See managed funds and ETFs to learn more about these investments.

Invest through your super

Your superannuation is also an investment, and most super funds offer you a number of different ways to invest your money. See super investment options for more detail.

For a fee, a financial adviser can help you set your financial goals, work out how much investment risk you are comfortable taking, and choose investments that suit your goals and circumstances. See financial advice for more information.