Education Centre - Sandhurst Trustees
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Learn About Investing

Types of investments

When it comes to investing in managed funds there are a wide range of investment options to choose from - be it income assets, growth assets, or diversified funds that offer a combination of both.

The right type of investment for you will depend on your investment objectives, timeframe and appetite for risk.

Income Assets
(Also known as Defensive assets)
Growth Assets
Cash, bonds and mortgage securities are considered income assets. They typically deliver returns in the form of income (i.e. pay regular income or interest payments to the customer).

Income assets are generally more stable and may feature:

  • Typically lower returns than growth assets.
  • Generally less fluctuations in returns over the short-term when compared with growth assets.
  • Returns are generally lower than growth assets over the medium to long-term, balanced with lower risk.

Shares and property are classified as growth assets.

Over time they generally provide returns in the form of capital growth.

Growth assets can be considered higher in risk and may feature:

  • Capital growth over the long-term with some income.
  • Fluctuating returns generally over the short-term, levelling out over the long-term.
  • The potential to produce higher returns compared to other asset classes, balanced with higher risk.

The five main asset classes are:

Cash

Fixed Interest

Mortgage Securities

Australian and International Shares

Property