Stepping into the world of financial investments can be an exhilarating, yet intimidating, experience for young and older Australians. Up until now, investing has likely been something you’ve heard about from friends and family, but never considered for yourself. But that doesn’t have to be the case, as the younger you begin investing, the greater your returns may be over your lifetime.
There are large number of investments options to consider for all Ordinary Australians including but limited to; Cryptocurrency; Equities; Managed/index funds; ETFs; Property; Bonds; Cash; Option;P2P lending; Savings accounts; Term deposits; Superannuation; Gold
It may be possible to turn a small sum of spare cash into a sizeable nest egg of wealth, simply by investing your money in a way that suits your financial goals. So, if you’ve got cash to spare, and you’re looking for ways to make it grow, it may be worth considering investing.
The road to financial prosperity begins with making informed investment decisions. Understanding the various investment options in Australia and how to navigate them can make the difference between a rocky financial journey and a smooth ride to wealth creation.
Key Takeaways
- Explore Australia’s investment landscape for a range of options with varying levels of risk and return.
- Consider ETFs, diversification strategies, rebalancing your portfolio, and professional advice when investing money in Australia.
- Understand the tax implications associated with investments to remain compliant with regulations.
Exploring Australia’s Investment Landscape
Australia’s investment landscape is a diverse ecosystem teeming with opportunities. From traditional assets like shares, real estate, bonds, cash, and cryptocurrencies to emerging trends like peer-to-peer lending and ESG investing, the land down under presents a rich assortment of avenues for investors looking to grow their wealth.
Investors can take advantage of the country’s robust financial infrastructure, which includes a robust financial infrastructure.
Traditional Assets
Traditional assets form the basis of Australia’s investment landscape. Shares, or stakes in publicly-listed companies, offer high potential returns but come with a significant level of risk. Property, on the other hand, provides a more tangible form of investment, generating revenue through rental or capital appreciation.
Bonds, including corporate bonds and government bonds, offer fixed interest income investments with regular interest payments, often preferred by investors seeking lower risk. Cash investments such as high interest savings accounts, a savings account, and term deposits offer an even safer haven for conservative investors, especially during turbulent times. In this context, fixed interest investments can be a suitable option for those looking for stability and predictable returns.
Emerging Trends
As with any dynamic market, Australia’s investment landscape is not immune to evolving trends. Cryptocurrencies, peer-to-peer lending, and ESG investing are some of the latest trends gaining traction. Cryptocurrencies, built on blockchain technology, have disrupted traditional finance and introduced a new asset class for investors to explore.
Peer-to-peer lending platforms have emerged as a viable alternative to traditional lending, connecting investors directly with borrowers and offering attractive returns. ESG investing, which factors in the environmental, social, and governance aspects of a business, is also gaining popularity among conscious investors.
Exchange Traded Funds (ETFs)
In the world of investments, Exchange Traded Funds (ETFs) have emerged as a popular option. Traded on the stock market just like stocks, an exchange traded fund offers a blend of simplicity, flexibility, and cost-effectiveness that is especially appealing to the modern investor.
The ease of buying and selling ETFs makes them a great choice for investors who want to diversify.
How ETFs Work
At their core, ETFs are investment vehicles that track an index or asset. They can be bought and sold on a stock exchange just like individual stocks, making them highly accessible for the average investor.
These funds offer a straightforward way to invest in an index’s selection of assets, providing a level of diversification that can be hard to achieve with individual stocks.
Much like a regular index fund, ETFs invest their wealth into a range of assets from a particular class (e.g. shares, currencies etc.). The difference is that rather than buying units in an ETF, like you would with an index or managed fund, you can buy shares in an ETF, just like buying equities on the stock exchange, and these can also be sold or traded if you choose.
Buying shares in an ETF is often quicker, less expensive and more flexible than buying units in a managed fund, and can offer a simpler way to invest in an index’s range of assets. You will need to pay brokerage fees when trading ETF shares through a broker or fund manager (such as BetaShares or Stockspot), just like when buying or selling regular equities.
Choosing the Right ETF
Choosing the right ETF requires careful consideration of your investment objectives, risk tolerance, and investment timeframe. This involves conducting thorough research and comparing different options to find the ETF that best aligns with your financial goals.
It is important to understand the different types of ETFs available, such as those that track a trade.
Cryptocurrencies
When it comes to investment options for younger Australians, the pressure to invest in cryptocurrency can sometimes feel stronger than the urge to do drugs. We’ve all heard the tales of acquaintances who put their money into Bitcoin and other blockchain-based cryptocurrencies, only to witness their investments skyrocket to six or seven figures. However, there are also cautionary anecdotes of individuals eagerly investing in new digital currencies, only to see their value stagnate, plummet, or disappear entirely, leaving angry investors in the dust.
So, the burning question remains: Is cryptocurrency a worthwhile investment in today’s world? The truth is surprisingly straightforward. If you have a genuine passion for the technology or conduct thorough research that reveals potential for significant returns, considering cryptocurrency might be worth it. Nevertheless, it’s crucial to abide by a golden rule of investing—only put your money into things you genuinely understand. Therefore, if the inner workings of a specific cryptocurrency are unclear, it may be prudent to steer clear of it as an investment option.
Still unsure? Take a moment to consult the wisdom of experts in the crypto field, including both seasoned investors and skeptics. Remember that since this technology is still relatively new, regulations surrounding it are also developing. Unfortunately, scams are all too common, so thoroughly vetting any cryptocurrency and exchange you use for your investments is paramount. Kaspersky offers the following tips to protect yourself from scams:
- Stay clear of anything promising “guaranteed returns” or “free money.”
- Avoid participating in pump and dump crypto schemes.
- Be skeptical of cryptocurrencies with poor or non-existent whitepapers.
- Exercise caution with cryptocurrencies that rely heavily on excessive marketing as a means to raise quick funds.
- Only download apps from official platforms.
To dive into the world of cryptocurrency, you’ll first need to find a reputable exchange and create an account, which often requires providing identification. We’ve outlined three steps to get started with buying cryptocurrency in Australia, but feel free to explore the crypto craze on your own terms.
While individual units of cryptocurrency (e.g. one Bitcoin) can have high prices, you don’t need to buy whole units at a time. Instead, it’s possible to invest in fractions of cryptocurrency units, the size and price of which can vary by currency, as well as the trading platform you use. Keep in mind that as well as paying for the cryptocurrency itself, the exchange you use may also charge you fees.
Building Wealth through Property Investments
Are you a young Australian finding it hard to consider property as a viable investment? You’re not alone! The costs involved can be daunting, with hefty deposits, rising interest rates, and tough competition at auctions. But here’s the good news – there are government schemes tailored to help first home buyers like you. With deposits as low as 5% (even 2% for single parents), buying property becomes more achievable.
And guess what? You don’t have to start with your dream home or limit yourself to your own state. Investing in affordable, up-and-coming areas can be a smart strategy. Now, let’s tackle the first hurdle. If saving a huge deposit seems impossible, consider having your parents act as guarantors on a home loan.
Once you’ve cleared that hurdle, you can start making money from your property investment in two ways. First, become a landlord and earn income by renting it out. Second, wait for the property to increase in value and sell it at a profit. While some investors flip properties for quick gains, most see property as a longer-term investment for rental income and capital growth.
Keep in mind, no investment comes with guarantees, including property. However, with a property located in a growing suburb, you could see a significant increase in value over time. Just make sure to attract tenants and maintain the value of your property.
When it comes to applying for a home loan, saving up for a deposit is a crucial step. While many lenders typically require a deposit of 20% or more of the property’s value, here’s an exciting twist: did you know that you can still apply for home loans with a deposit as low as 5%? But here’s the catch: if you don’t qualify for government assistance schemes, keep in mind that deposits below 20% also come with the additional cost of Lenders Mortgage Insurance (LMI), which can be quite expensive.
Now, let’s explore an alternative approach to saving up a hefty deposit. Have you ever considered having a guarantor, like a parent or close relative, secure the deposit by using equity in their own property? It’s worth considering, but make sure you budget wisely enough to meet your repayments and not put the guarantor’s property or other assets at risk in case of default.
But wait, there’s even more! If you’re seeking lower-cost options to invest in property, services like BrickX offer a unique opportunity. You can purchase fractions or “bricks” of an investment property through BrickX, and in return, receive a corresponding fraction of the property’s rental income and even its capital growth if you decide to sell later. Additionally, you might want to explore rent-to-own options like OwnHome. Just remember to read the fine print and seek financial and legal advice before diving in.
So, whether it’s saving up for a deposit, considering a guarantor, or exploring innovative property investment services, there are plenty of engaging options to make your dream of homeownership a reality.
Building a Share Portfolio – Equities
Equities, also known as shares, stocks, or securities, are often associated with investing. The world of equities trading may seem daunting at first, especially if you’re new to share markets. But don’t worry, you don’t have to become an overnight financial guru like Jordan Belfort. It’s perfectly fine to start small and invest at a level that you’re comfortable with.
Now, let’s explore some ways you can begin investing in equities. If you prefer to personally choose which shares to buy and sell, you can use an online broking service that facilitates transactions at relatively low fees per trade. On the other hand, a full-service stockbroker may charge more, but they can offer personalized advice, which can be valuable if you’re unsure about where to invest.
Let’s talk about the minimum investment requirements. Typically, the “minimum marketable parcel” of shares is around $500. So, if you want to invest in a company with shares priced at $5 each, you’ll need to buy a minimum of 100 shares.
Now, what if you don’t have a substantial amount of money to invest? Well, one option to consider is microinvesting. This involves investing small sums, either frequently or infrequently, through an app, to build a portfolio of various assets.
Remember, investing in equities is a journey, and it’s never too late to start. So, take your time, do your research, and enjoy the process of growing your wealth through investing.
Earning Wealth on Options Trading
Options trading involves buying and selling a financial instrument known as an option. These derivative contracts derive their value from an underlying asset or benchmark, often a company share, but they can also be linked to exchange-traded funds (ETFs) or even an index.
Now, let’s dive into how options work. An option contract gives the holder the right (but not the obligation) to buy or sell a specific company’s stock at a predetermined price (the ‘exercise price’) on or before a specific date (the ‘expiry date’). As the price of the underlying share fluctuates, it impacts the option’s value, providing opportunities for investors to profit.
But options trading offers more than just potential profits. They can also act as a hedge against potential losses in your portfolio, reducing overall risk. Strategic use of options is an effective way to safeguard your investments.
Let’s explore the two types of options: puts and calls. Buying a put option grants you the right to sell the underlying security at a given price within a specific timeframe. On the other hand, purchasing a call option gives you the right to buy the underlying asset at a predetermined price within a specific timeframe.
Options allow investors to make strategic predictions about the future performance of the underlying asset. For instance, if you anticipate a rise in a share’s price, you could buy a call option with an exercise price at or below the stock’s current price. As the stock price climbs, your option value increases. By exercising the option, you can lock in an instant profit by buying the shares at the price specified in the option contract and selling them right away on the open market.
Now, here’s a crucial aspect to note about options: they are contracts between two parties, a buyer and a seller. If the option buyer chooses to exercise their option, it obligates the seller to engage in a transaction to either buy or sell the underlying asset.
Keep in mind that options trading is a zero-sum game – a win-lose situation. One party to the contract emerges as the winner, while the other experiences a loss.
Government Bonds as an investment option
Investors play a crucial role in supporting the government by lending money for a specific duration at a predetermined interest rate. When bonds are issued, the government ensures regular interest payments throughout the bond’s lifespan and reimburses the initial investment, or principal, upon its maturity date.
In Australia, these bonds, known as Commonwealth Government Securities, typically offer lower interest rates compared to corporate bonds. This is because the Australian Government is generally perceived as a lower-risk borrower compared to companies.
If you’re wondering how government bonds can benefit you, keep in mind that many default superannuation funds allocate a portion of their members’ funds to government bonds. These bonds provide a reliable source of income and offer a lower-risk investment option.
Interestingly, some government and corporate bonds can be traded on the ASX (Australian Securities Exchange). The government-issued bonds available for trading on the ASX are referred to as ‘Exchange Traded Australian Government Bonds’.
Now, let’s delve into the two main types of Australian Government Bonds listed on the ASX:
- Treasury Bonds: These are debt securities with a medium to long-term maturity period. They carry an annual fixed interest rate for the entire lifespan of the bond. Interest payments are made semi-annually at a fixed rate, calculated as a percentage of the original face value ($100). The bonds are ultimately repaid at their face value upon maturity.
- Treasury Indexed Bonds: Similar to Treasury Bonds, these offer medium to long-term investment options. The unique feature of Treasury Indexed Bonds is that their capital value adjusts according to changes in the Consumer Price Index (CPI), which tracks inflation. Interest is paid quarterly at a fixed rate based on the adjusted face value. When the bond matures, investors receive the capital value adjusted for CPI changes over the bond’s life.
The Australian Government has maintained an impeccable track record, never defaulting on interest payments or the repayment of principal for the bonds it has issued. This unwavering commitment to financial reliability makes government bonds a highly secure investment product, second only to cash when it comes to the risk spectrum.
In summary, investing in government bonds is not only a secure choice but also contributes to the nation’s growth and development.
Cash Savings Account as an investment option
When it comes to saving money, a humble savings account can be a valuable tool. Whether you’ve had one since childhood or were encouraged by your parents when you started working, it’s worth understanding how it differs from a regular bank account.
One key benefit of a savings account is the opportunity to earn interest on your deposits. This not only encourages you to make regular contributions but also discourages frequent withdrawals. The more money you can deposit and leave untouched, the more interest you can accumulate, making it easier to achieve your savings goals.
Now, let’s be realistic: a savings account won’t make you rich overnight. Even with the rising interest rates, it takes time to see significant growth. But compared to simply leaving your money in a transaction account or stashing cash under your mattress, a savings account offers a more fruitful option.
The good news is that younger Australians are currently being offered some of the highest savings account interest rates. For instance, Bank of Queensland provides a first saver account with an interest rate above 4% for those aged 14-35. Even when interest rates were historically low, banks still offered competitive rates for younger individuals. Westpac’s Life account, for instance, has provided rates above 3% for those aged 18-29.
Another advantage of savings accounts is that they often don’t require a specific minimum balance. Some may only ask for a small $1 deposit to activate the account. Additionally, certain accounts may offer higher interest rates if you make regular monthly deposits. However, it’s important to review the terms and conditions before signing up.
In conclusion, a savings account may not make you instantly wealthy, but it is a reliable tool for financial growth. It’s never too early to start saving, and with the right account, you can make your money work for you.
Private Equity
Private equity (PE) describes investments that represent an equity interest in a privately held company.
Any business that is not a public company is part of the substantial private company universe, which includes millions of US businesses compared with the few thousand that are public companies. That also means a large part of the private universe is startups and small businesses, along with some more established companies that have not yet gone public or choose to remain private.
While similar in concept to equity securities in publicly held companies, private equity investments have sufficiently unique form and characteristics to consider them a separate asset class. Primary among these characteristics are high risk, illiquidity, and finite durations.
Private equity shares can be acquired directly from an issuing company, though because they have high risk and are not liquid, it is more common to acquire private equity through funds for diversification and professional management.
Investing in private equity means understanding the uniqueness of the asset class and its various subclasses, the mechanics of a private equity fund, and the risks and returns of the investment.
Gold as an Investment Option
Looking for an investment that’ll take you back to the old-school days? Why not consider getting your hands on some shiny gold bricks! Gold has stood the test of time and remains a popular choice for many investors today. Its long-term stability and consistency make it a valuable asset, even when other markets take a nosedive.
But here’s the catch – gold is not just about making a quick buck. Most investors use it to secure their existing wealth and diversify their portfolio. While everything else might be going downhill, you can count on gold to hold its value, and maybe even increase it.
Before you jump in, keep in mind that there are security costs you need to consider, as well as the authenticity of the gold when buying or selling.
Now, let’s talk about how you can get started with gold. Some gold bullion depositories, like ABC Bullion and Perth Mint, offer savings plans where you can invest as little as $50 per month in gold and silver. It’s like having a savings account, but shinier!
If you prefer something more tangible, you can purchase physical gold bars or coins. The price will depend on their weight (ranging from one gram to one kilogram or more) and the current gold price. You can either store them at the depository or arrange your own security.
So, if you’re looking for stability and a touch of old-school charm, gold might just be the glittering investment you’ve been searching for!
P2P Lending
Peer to peer (P2P) lending can be thought of as the “Uber for money” – a simple and innovative way for individuals to connect with one another. Rather than relying on traditional lending institutions, P2P lending platforms like Plenti, SocietyOne, Harmoney, or Now Finance help facilitate these transactions.
If you’re considering becoming a lender in a P2P arrangement, you have the opportunity to earn interest on the money you lend, similar to a bank. Keep in mind, though, that P2P lending operates differently and may come with fewer guarantees compared to more conventional investment options.
Let’s talk about the minimum investment involved. The specific platform you choose will determine the minimum amount you can invest. For example, the Plenti Lending Platform (PLP) sets the minimum investment at just $10.
P2P lending offers a new and engaging way to partake in the lending economy, allowing individuals to directly connect and support one another’s financial goals.
Term Deposits
Are you looking to achieve a long-term financial goal? If so, consider a term deposit as a reliable and low-risk option. By depositing your money with a bank, you allow it to accrue interest over time, similar to a savings account. The longer you agree to keep your money in the deposit, the higher interest you can earn.
A term deposit offers the advantage of being one of the safest ways to grow your initial investment. Unlike a savings account, you cannot easily make withdrawals from a term deposit. This lack of flexibility eliminates the temptation to dip into your savings and keeps you committed to your investment plan. Another benefit is the absence of requirements, such as regular deposits, to enjoy a higher interest rate.
Planning your budget is made easier with a term deposit, as you can calculate your potential interest earnings in advance. However, it’s crucial to compare options before finalizing your decision. Look for the provider that offers the highest return on your investment with minimal fees, and choose one you feel comfortable entrusting with your nest egg.
Keep in mind that many providers have a minimum deposit requirement, typically around $5,000, although some allow deposits as low as $1,000. Generally, the more money and time you invest, the higher the interest rate you may receive.
Take the time to weigh your options and find the perfect term deposit to help you achieve your financial goals.
Managed Funds/Index Funds
In a managed or index fund, investors pool their money together to invest in a diverse range of assets. The returns you earn will be determined by the value of these assets and the amount you have invested in the fund.
Some managed funds are active funds, where an investment manager expertly selects high-value stocks on behalf of the group, such as Microequities Asset Management. Entrusting your fund manager’s skills is crucial in these cases, and it is important to be confident in their abilities. Keep in mind that fees may be applicable for their services.
On the other hand, passive or index funds buy into a pre-determined portfolio of assets. Although you may have less flexibility in choosing how your money is invested, you will receive income based on the fund’s investment value.
Each individual managed or index fund has its own minimum investment requirement, typically ranging between $1000 and $5000.
Building a Balanced Investment Portfolio
In the realm of investing, balance is key. A well-rounded investment portfolio that is diversified across asset classes, sectors, and regions can help manage risk and optimize returns.
Diversification Strategies
Diversification is a tried-and-true strategy that involves spreading your investments across various asset classes, sectors, and regions. This can help reduce the impact of any single investment underperforming, while increasing your chances of capturing returns from different market sectors.
By diversifying your investments, you can reduce the risk of any single investment dragging down your investment.
Rebalancing Your Portfolio
Maintaining balance in your investment portfolio requires regular rebalancing. This involves adjusting the allocation of assets in your portfolio to maintain your desired level of risk and return. By selling and buying assets, you can bring your portfolio back to its original target allocation and ensure that it remains aligned with your investment goals and risk tolerance.
Rebalancing your portfolio is an important part of maintaining a healthy investment strategy. It helps to be successful.
Seeking Professional Advice
While investing can be a fruitful endeavor, it can also be complex and fraught with risks. This is where professional advice comes in. By consulting a professional, you can gain valuable insights and guidance tailored to your unique financial goals and personal circumstances, helping you to invest money wisely and navigate the world of investing money.
Having a professional on your side can help you make informed decisions and navigate the complexities of the industry.
Finding a Qualified Adviser
Finding a qualified financial adviser involves researching their qualifications, certifications, and licenses. It’s also important to consider their experience, areas of expertise, and fee structure.
When researching a financial adviser, it’s important to look into their credentials and qualifications. Make sure to make sure.
Working with an Adviser
Working effectively with a financial adviser requires open communication and setting clear expectations. This involves articulating your financial goals, understanding their recommendations, and jointly monitoring your investments.
It is important to be honest and open with your adviser, and to ask questions if you don’t.
Finding the Right Financial Mentor
One of the best pieces of advice in the article is to find a financially successful financial mentor. They can guide you through the maze of investment options and help you on the way to financial freedom.
DIY Investing vs Managed Funds
When it comes to investing, one size doesn’t fit all. Depending on your financial goals, risk tolerance, and personal preferences, you may choose to go down the DIY investing route or opt for managed funds.
DIY investing involves researching and selecting individual stocks and bonds, monitoring and rebalancing.
Pros and Cons of DIY Investing
DIY investing offers greater control over your investments and potential cost savings. However, it requires a higher degree of knowledge and research and carries the risk of frequent trading.
Pros and Cons of Managed Funds
Managed funds, on the other hand, provide professional management by a fund manager, diversification, and ease of access. However, they also involve management fees and may not always meet performance expectations.
Superannuation: A Key Retirement Investment
Superannuation is a key retirement investment in Australia. It offers tax advantages and a range of investment options, providing a solid foundation for your retirement nest egg.
With superannuation, you can choose from a variety of investment options, such as shares.
Growing Your Super
Growing your superannuation can be achieved through strategies such as making additional contributions and optimizing your investment mix. Consolidating multiple super accounts can also help avoid multiple account-keeping fees, saving more money for retirement.
Investment Options within Super
Super funds offer a variety of investment options, including pre-mixed portfolios, sector-specific funds, and direct investments. Choosing the right option depends on your investment goals, risk tolerance, and time horizon.
Navigating Australia’s Regulatory Environment
Navigating Australia’s regulatory environment is a critical part of investing. Understanding the rules and regulations that govern your investments, as well as the tax implications, can help you make informed decisions and stay on the right side of the law.
It is important to research the regulations and laws that apply to your investments, as well as the laws that apply to your investments.
Understanding Tax Implications
Understanding the tax implications of your investments is crucial for making tax-efficient decisions and achieving capital growth. This involves being aware of taxes such as capital gains tax, income tax, and other taxes that may apply to your investments.
It is important to understand the different types of taxes that may apply to your investments, and how they may work.
Staying Compliant with Regulations
Staying compliant with regulations involves being aware of disclosure requirements, licensing, and reporting obligations. If you’re unsure about any aspect of compliance, it’s a good idea to seek professional advice.
Compliance is an important part of running a business, and it’s essential to make sure that compliance is made.
Summary
Investing in Australia offers a wealth of opportunities, from traditional assets to emerging trends, from DIY investing to managed funds. However, with these opportunities come responsibilities and risks. By understanding the various investment options, making informed decisions, seeking professional advice, and staying compliant with regulations, you can navigate Australia’s investment landscape and achieve your financial goals.
Frequently Asked Questions
What is the best thing to invest in Australia?
For young Australians, investing in a mix of different financial assets such as shares, funds, and bonds is the best option for 2023. Spreading investments across asset types helps maximize returns while minimizing risk.
Investing in a mix of assets can be a great way to diversify and protect against market volatility. It also allows investors to take advantage of different market conditions and capitalize on opportunities.
Investing in a mix of technologies is an investment.
Which investment gives highest return in Australia?
Investing in index funds, high-growth companies, long-term crypto projects, and diversified real estate portfolios are some of the best ways to earn a higher return on your investments in Australia.
These investments can provide a higher return than traditional investments, such as stocks and bonds, and can help you build wealth over time. With careful research and planning, you can make informed decisions about which investments are right for you.
It is important to remember that investing carries a cost.
What is the best way to invest $10000 in Australia?
Investing $10,000 in Australia can be done by setting up an emergency fund, paying down any high interest debt, contributing to Superannuation, investing in low-risk and low-return options, index funds (ETFs), individual stocks, or real estate.
Exchange traded funds are a great way for beginners to start their investment journey as they provide a broad collection of securities that can be listed on the Australian Securities Exchange.
What to invest with $1,000 AUD?
With $1,000 AUD, consider investing in a savings account, mutual funds, a CD, ETFs, stocks, bonds, and real estate.
Investing in a savings account is a great way to start building your wealth. It is a low-risk option that allows you to earn interest on your money. Mutual funds are a great way to diversify your investments and spread out your wealth.
What are 5 types of investments?
Investing comes in four main types: property, shares, stocks, bonds, cash equivalents, mutual funds and Superannuation. Each investment type carries different levels of risk and reward, so it’s important to understand each before deciding on an investment strategy.
When investing, it’s important to consider your goals, risk tolerance, and time horizon. Stocks are generally considered to be the riskiest investment type, but they also offer great returns.
