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6 Wealth-Building Investment Options For Younger Australians

6 Wealth-Building Investment Options for Younger Australians

For younger Australians who are earning their own money and starting their wealth-building journey, it’s only natural to seek out the most suitable investment planning strategies to help you achieve your goals. We’re all looking to build our wealth and that comes in the form of investing for many of us. According to the Australian Securities Exchange’s 2020 Australian Investor Study, 25% of new investors in the 12 months leading up to the study were Millenials.1

Keep in mind that building your investment plan is all about getting the greatest return with as little risk as possible. After all, you wouldn’t want to drain and lose all your already available resources.

There are countless investments for younger Australians to choose from and narrowing down your choices with a professional adviser would be ideal so that your money doesn’t go to waste. If you want peace of mind and confidence in your investment planning, consult someone more with the experience, knowledge and accreditation to guide you – such as a professional financial adviser.

To get a headstart, read our tips on 6 Wealth-Building Investment Options for Younger Australians.

Investment Options for Younger Australians

1) Shares

Buying shares can build your wealth over time, however, like most other investment options, there is volatility and risk involved. You need to educate yourself before diving into share trading. Shares are the most popular investment among Australians, with 58% of us owning them.2 You can purchase shares in all sorts of companies and from all kinds of industries that you have an interest in. As share trading can be complex, it is best to seek guidance from your investment adviser and develop the right plan for you and your funds.

2) Property

If you have a long-term view and patience for the real estate market, you can consider purchasing a property as part of your investment strategy. While it’s impossible to get your investment back overnight, the property can be an ideal option for long-term investors as it gives you the opportunity to make some profit down the road. 

Another issue to consider here is the increasingly high barrier for young investors to purchase property directly due to the famously expensive Australian real estate market and the upfront capital required to fund this type of purchase.

If you have your heart set on owning property as part of your portfolio, another option may be Real Estate Investment Trusts (aka REITs) whereby a professional investment manager pools funds to invest in property assets such as offices and apartment buildings, shopping centres and hotels. Rather than directly owning one property, you own units within the trust.

3) Managed Funds

Like an REIT, managed funds pool together the money of individual investors however, they use it to buy a variety of assets such as shares, bonds and property. Different funds are established with different objectives and risk exposure so it’s important to find a managed fund which matches your own objectives and risk tolerance.

Part of a managed fund’s appeal is the fact that you can leave the buying and selling decisions to the manager of the fund, whose job it is to research the fund’s investment options thoroughly and use your money to generate positive returns. As with most investment options, there will be risk so it is best to seek guidance from your investment adviser and develop the right plan for you and your funds.

4) Super

Your super fund is a great place to start saving for retirement since it’s an investment in a future where you can take it easy. The mistake that many young Australians make is not paying attention to their super fund as retirement seems so far away. Research by ASFA has found that “young Australians aged under 30 years tend to have more money in their superannuation accounts than their bank balances, yet 40 per cent of young people have no idea what their super balance is and a further 16 per cent only have a vague idea.”3

Whilst your employer will make compulsory super guarantee contributions of 10% of your gross wages into your super fund, you can make additional investment in your super from your own money in an effort to grow your retirement fund. Your financial adviser can help you decide what contribution strategy is suitable, how to invest your super, and guide you on what steps on your retirement wealth-building journey.

5) ETF

ETFs or exchange-traded funds are proving popular with younger Australians for wealth-building. This may be as younger investors typically have a smaller amount of capital to invest with, meaning that low-cost ETFs could be more appealing. According to the Australian Securities Exchange’s 2020 Australian Investor Study, ETFs are most popular amongst younger investors with 1 in 5 young investor holding an ETF within their portfolio.4

ETFs can provide diversification from a single investment which makes it easy to diversify your investment portfolio from the outset. You can either narrow your investment to one specific market sector or spread your investment broadly, from international shares to bonds to commodities.

6) Term Deposits

Term deposits are one of the most reliable investments for younger Australians, saving some cash for the future by putting your hard-earned money into term deposits for a fixed amount of time for a fixed rate of return. You can also earn some interest on your savings account while still building and building your wealth further. One of the risks of term deposits is the typical low rate of return which may result in the real value of your money being reduced by inflation.

Ready to Start Your Wealth-Building Journey?

It’s certainly exciting to plan your financial future and start investing for young adults. It’s important to know that every investment has some risks – be wary, understand what you are investing in, and seek professional invest to get started on the right track and have confidence in your financial strategy.

Need investment advice? Sydney Wealth Advisers have a team of experienced financial advisers available to work closely with you to select suitable strategies, build wealth and fund the lifestyle you desire. Call us or book online to secure you complimentary initial meeting with our Advice Team.


  1. https://www2.asx.com.au/blog/australian-investor-study
  2. https://www.canstar.com.au/investor-hub/young-investors/
  3. https://www.superguru.com.au/about-super/youngpeople#:~:text=Young%20people%20and%20super%20facts&text=Research%20by%20ASFA%20has%20found,only%20have%20a%20vague%20idea.
  4. https://www2.asx.com.au/blog/australian-investor-study


DISCLAIMER: The views expressed in this publication are solely those of the author; they are not reflective or indicative of RI Advice Group’s position and are not to be attributed to RI Advice Group. They cannot be reproduced in any form without the express written consent of the author. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice. Newcastle Financial Planning Group, Central Coast Financial Planning Group, Sydney Wealth Advisers, Coastal Advice Port Macquarie and Coastal Advice Ballina Byron are subsidiaries of Coastal Advice Group Pty Ltd which is a Corporate Authorised Representative of RI Advice Group Pty Ltd, ABN 23 001 774 125 AFSL 238429.
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