Cash

Cash This is a simple as it gets. Cash assets include any salary or wages you may receive and deposits in the bank or products like cash management trusts. Cash is the most dangerous to be in if you stay invested here for too long when you have longer-term goals. The only reason you would have cash sitting in a bank account is because you are about to buy another asset with it in the next 12 to 18 months.
With cash you can invest:
- in many forms
- directly or through a managed fund
- within Australia and overseas.

Fixed interest Fixed interest investments are mainly referred to as debt securities. This type of asset can be found in the form of government debt and bonds. Other fixed interest investments may sound familiar to you such as term deposits, corporate bonds, bank bills, inflation indexed bonds and debentures. These bonds and other debt instruments can be purchased locally as well invested internationally. With fixed interest you can invest:
- within Australia and overseas
- directly—though this may prove difficult—or through a managed fund.

Property We are all familiar with holding physical property such as owning your own home. This is referred to as holding direct property. You may also own other property such as an investment property.

You can hold property indirectly through a fund manager in the form of a listed property trust (LPT). LPTs can be purchased on the ASX (Australian Stock Exchange), or again managed by a fund manager. Over the past few years, interest and returns in this asset class has exploded and, more recently, Australian fund managers are looking to invest offshore. With property you can invest:
- directly or through a managed fund
- within Australia and overseas.