Invest
Hunt for yield driving alternative investments
The low rate environment means investors are moving towards financial product assets and away from property to earn returns in 2020, according to new research.
Hunt for yield driving alternative investments
The low rate environment means investors are moving towards financial product assets and away from property to earn returns in 2020, according to new research.
Consumer credit financier RateSetter has found that nearly seven-in-10 of its users consider low interest rates as having impacted their investment strategy over the course of 2019.
According to RateSetter CEO Daniel Foggo, “low-interest rates are the new reality Australians have to face”.
“If the UK is anything to go off, we could be settling in for a decade of low rates,” he advised.
Almost two thirds of investors surveyed who indicated they would be moving their money in 2020 said they would invest their money in financial products to earn returns over property investments in 2020, it was reported.
Mr Foggo said the company’s insights have revealed the top three factors impacting investors’ decisions.
These are are the need for portfolio diversification, low-interest rates and the quest for performance.
With the low-rate environment meaning a number of investors are re-evaluating where they should be putting their money, RateSetter highlighted how there is “a misconception that retail investors are willing to try anything, including speculative products they don’t understand”.
Instead, the credit company reported that “when confronted with low-interest rates, investors are sticking with the investments they know and that have served them well”.
Investors have been urged to look for transparency when evaluating alternative investment strategies, with Mr Foggo advising people to watch out for excessive fees or hidden risks.
“If you don’t get how it works, the product is probably not for you,” he indicated.
RELATED ARTICLES
About the author
About the author
Cash
Navigating the equilibrium: Investor sentiment in the face of equity peaks and diminishing cash reserves
State Street's latest Risk Appetite Index indicates a nuanced shift in institutional investor sentiment during March, with the index reverting slightly towards neutrality. This subtle recalibration in ...Read more
Cash
RBA's November rate hike overshadows Melbourne Cup festivities
In a move that managed to draw attention away from the thrill of the Melbourne Cup, the Reserve Bank of Australia (RBA) has increased the cash rate by 25 basis points to 4.35 per cent, surprising ...Read more
Cash
RBA makes first cash rate call for 2022
The RBA has announced its first rate decision for 2022. Read more
Cash
Cash remains king for many Australians
Demand for banknotes remains high despite a decline in cash transactions. Read more
Cash
Interest rates to rise next year?
Commonwealth Bank has seconded Westpac’s predictions, forecasting that interest rates will rise well ahead of the RBA’s 2024 timeline. Read more
Cash
RBA makes latest official cash rate call
The Reserve Bank of Australia has made its May call on the official cash rate, with the economy said to be a long way from the conditions needed to precede a rate rise. Read more
Cash
RBA puts chatter of an earlier rate hike to rest
The Reserve Bank of Australia has put to rest chatter among investors that conditions for a higher cash rate could be met as early as next year, reaffirming its stance that the rate is “very likely” ...Read more
Cash
Australia tipped to go cashless by 2024
Australia is forecast to effectively go cashless in just three years, with three in 10 Aussies admitting that “going cashless would be great for the country”. Read more
Cash
Navigating the equilibrium: Investor sentiment in the face of equity peaks and diminishing cash reserves
State Street's latest Risk Appetite Index indicates a nuanced shift in institutional investor sentiment during March, with the index reverting slightly towards neutrality. This subtle recalibration in ...Read more
Cash
RBA's November rate hike overshadows Melbourne Cup festivities
In a move that managed to draw attention away from the thrill of the Melbourne Cup, the Reserve Bank of Australia (RBA) has increased the cash rate by 25 basis points to 4.35 per cent, surprising ...Read more
Cash
RBA makes first cash rate call for 2022
The RBA has announced its first rate decision for 2022. Read more
Cash
Cash remains king for many Australians
Demand for banknotes remains high despite a decline in cash transactions. Read more
Cash
Interest rates to rise next year?
Commonwealth Bank has seconded Westpac’s predictions, forecasting that interest rates will rise well ahead of the RBA’s 2024 timeline. Read more
Cash
RBA makes latest official cash rate call
The Reserve Bank of Australia has made its May call on the official cash rate, with the economy said to be a long way from the conditions needed to precede a rate rise. Read more
Cash
RBA puts chatter of an earlier rate hike to rest
The Reserve Bank of Australia has put to rest chatter among investors that conditions for a higher cash rate could be met as early as next year, reaffirming its stance that the rate is “very likely” ...Read more
Cash
Australia tipped to go cashless by 2024
Australia is forecast to effectively go cashless in just three years, with three in 10 Aussies admitting that “going cashless would be great for the country”. Read more
