10 Best Things To Invest In for Beginners in Australia (2025 Edition)

Australia’s investment landscape is changing. The ASX Investor Study 2023 found more beginners entering the market, favouring diversified ETFs and global shares for long-term, low-cost growth.

ASIC’s Moneysmart says 52% of Australians set financial goals each year, but only 12% achieve them—so we need to develop consistent, goal-based investing habits.

Financial professionals are also loving ETFs. 70% of advisors reported increasing their ETF allocations over the past 12–18 months, up from 62%.

Bentleys Australia advises new investors to combine shares, property and managed funds, balance risk and return instead of chasing single high-risk assets or short-term profits.

Overall, experts agree beginners should prioritise ETFs, index funds, super contributions and bonds—stable, diversified options that build confidence and steady growth in Australia’s dynamic financial market.

10 Best Ways to Invest $100,000 in Australia for Beginners

Exchange-Traded Funds (ETFs)

If you have $100,000 to invest in Australia, Exchange-Traded Funds (ETFs) are one of the smartest and easiest ways to get started. They offer instant diversification, low fees and access to both Australian and global markets.

Before you begin, set your goals and time frame — five, ten or twenty years. Make sure you have an emergency fund and understand your risk tolerance. Then decide how much to allocate between shares, bonds and cash.

Australia’s ETF industry is booming. According to BetaShares, total ETF funds under management reached $258.9 billion in 2025, a 38% annual growth driven by strong inflows and market gains. This growth shows Australians are increasingly turning to ETFs for long-term investing.

For beginners, start with broad-based ETFs:

• VAS (Vanguard Australian Shares Index ETF) — tracks the top ASX companies.

• A200 (BetaShares Australia 200 ETF) — low-cost exposure to the top 200 stocks.

• VGS (Vanguard MSCI International Shares ETF) — global diversification.

• NDQ (BetaShares Nasdaq 100 ETF) — exposure to US tech giants.

A sample mix might be 40% VAS, 30% VGS, 15% A200 and 15% NDQ. This spreads your risk across markets and sectors.

Australian broad-based ETFs have historically returned around 12–15% p.a. over the last three years (Canstar). Returns are not guaranteed but 7–10% is a realistic long-term average for a diversified portfolio.

Start by opening a brokerage account, compare ETF fees and invest gradually through dollar-cost averaging.

Reinvest dividends and review your holdings yearly. Over 20 years a $100,000 ETF portfolio compounding at 7% could grow to almost $387,000, the power of patience and consistency.

Managed Funds / Index Funds

Investing in managed funds or index funds is easy and low stress for beginners to grow wealth in Australia’s strong economy.

Managed funds pool your money together. Professionals invest it in shares, bonds or property. This spreads your risk and gives you instant diversification.

Index funds mirror a market index, such as the ASX 200, aiming to match returns not beat them. They offer predictable, low cost exposure.

According to MoneySmart, these funds help Australians invest without needing advanced financial knowledge or large capital.

The Australian Bureau of Statistics reported the managed funds industry had $4.75 trillion in assets by end 2023, that’s a lot of investor confidence.

Why Managed or Index Funds

• Diversification: Exposure to many sectors in one fund.

• Low cost: Lower fees than most active strategies.

• Professional management: Experts manage your portfolio.

• Ease: Easy to buy, track and manage.

Popular Fund Options

• Vanguard Australian Shares Index Fund: Tracks the top ASX companies.

• Macquarie Australian Shares Fund: Actively managed, aims to outperform the market.

• InvestSMART Balanced Fund: A mix of equities, bonds and cash.

These options suit conservative and growth focused investors looking for long term returns.

Historically, broad based index funds have returned 7-10% per year over the long term, depending on market conditions and fund structure.

Beginner Tips

• Read each fund’s Product Disclosure Statement carefully.

• Compare management fees and minimum investment amounts.

• Invest gradually using dollar cost averaging.

• Reinvest distributions for compound growth.

• Review your portfolio annually.

Consistent investing, patience and disciplined reinvestment can turn $100,000 into several hundred thousand dollars over 15-20 years — a path to financial freedom.

Direct Shares / Stocks

If you have $100,000 to invest in Australia, buying direct shares or stocks can be a powerful way to build personal wealth. Unlike funds or ETFs, you choose exactly which companies you own, giving you hands on control and potentially higher long term returns.

First define your financial goals and timeframe — 5, 10 or 20 years. Keep a buffer for emergencies and how much market volatility you can handle.

Once ready, plan to spread your investments across multiple industries like banking, mining, healthcare and technology to reduce overall risk.

Australia’s stock market has a great track record of growth and resilience. Data from Market Index shows the ASX has returned around 13% per year (including dividends) since the early 1900s. Over the past 10 years the ASX 200 has returned around 9% per year (Motley Fool Australia), that’s the power of equities over the long term.

For first time investors start with stable, high quality companies like:

• Commonwealth Bank (CBA) – consistent dividends and earnings.

• BHP Group (BHP) – a global leader in mining and natural resources.

• CSL Limited (CSL) – a top biotechnology company with international exposure.

A simple starting mix might be 30% financials, 30% resources, 20% healthcare and 20% technology or defensive sectors.

Open a brokerage account, research company fundamentals and invest gradually using dollar-cost averaging.

Bonds and Fixed Income

If you’re looking to invest $100,000 in Australia and want steady, reliable returns bonds and fixed income products are the way to go.

These investments are all about capital protection and interest payments not market speculation — great for conservative or first time investors.

Start by defining your goals and time frame. Short term investors (1–5 years) may prefer shorter dated bonds, long term investors (10+ years) can lock in higher yields.

Bonds perform best when held to maturity so think about how long you can commit funds. It’s also wise to mix government, corporate and bond ETF options for diversified exposure.

Australia’s fixed income market is still attracting investors looking for reliability. Data from Trading Economics shows 10 year Australian Government Bonds are yielding around 4.22% p.a. and 2 year bonds around 3.76%.

High quality corporate bonds like those issued by the major banks can return around 4.2% p.a. but carry slightly more credit risk. The S&P/ASX Australian Government Bond Index is the key measure of bond performance and investor sentiment.

Some beginner friendly options are:

• Exchange-Traded Treasury Bonds (eTBs) – government backed with semi-annual interest payments.

• Corporate Bonds – issued by companies like Commonwealth Bank or Wesfarmers.

• Bond ETFs – like the Vanguard Australian Government Bond ETF for easy diversification.

A balanced approach might be 40% government bonds, 30% corporates and 30% ETFs.

Based on current yields investors can expect 4–5% p.a. returns before inflation. Over 20 years a $100,000 bond portfolio compounding at 4.5% could grow to around $241,000 so patient, income focused investing can deliver steady long term rewards.

High-Interest Savings Accounts & Term Deposits

If you’re looking to invest $100,000 in Australia and want low risk, steady growth high-interest savings accounts and term deposits are the way to go. These products are all about capital protection and predictable income — perfect for cautious investors or anyone looking for stability in a volatile market.

Start by deciding how accessible you want your money to be. A high-interest savings account lets you earn interest while keeping funds available for withdrawals. A term deposit locks your money for a fixed period and offers a guaranteed return at a set rate. 

Both are backed by the Financial Claims Scheme which covers deposits up to $250,000 per institution so you can have peace of mind.

Recent rate trends have been good for savers. Data from Savings.com.au shows the top savings accounts for 2025 are paying up to 5.15% p.a. with many paying between 4% and 5% once bonus conditions are met.

Top picks are the ING Savings Maximiser (4.8%) and the AMP Saver Account (5.0%) both with flexible access.

Fixed Earnings through Term Deposits

If you’re after a steady income, term deposits are worth serious consideration. According to the Commonwealth Bank, you can currently earn 3.50% p.a. from a 12-month deposit. 

And if you look at banks like Macquarie and UBank, they’re offering very competitive rates – anywhere between 3.8% and 4.5% – depending on how long you tie up your cash for and how much you’re prepared to put in.

To balance things out, you could try splitting your funds – put half in a high-interest savings account where you’ve got easy access to your cash, and the other half in term deposits for a bit more of a return.

On average, at a 4.0% annual rate, your $100,000 could grow to around $148,000 in a decade. and that’s not bad going, but it’s not exactly a whirlwind success story either. 

Still, this approach does offer a decent combination of security, reliability, and a steady income in today’s rapidly changing financial landscape.

Real Estate & Property Funds – a Strong Investment Option

If you’re thinking of investing $100,000 in Australia, consider real estate and property funds. They can provide a pretty reliable way to earn a steady income and build up some long-term wealth.

One of the main benefits of these investments is that they offer a chance to get into the commercial, retail, and industrial property markets without having to buy property outright. Instead, you can use managed funds or listed REITs (Real Estate Investment Trusts) to access these markets.

Before you start, take some time to think about what you’re aiming to achieve and how long you’re willing to wait. Property funds should give you a steady income and the potential for some long-term growth.

Also, decide whether you prefer listed A-REITs (which are traded on the ASX and offer some liquidity) or unlisted property funds (which may offer higher yields but require you to lock your cash in for longer). To spread your risk, try diversifying across different types of property – office space, retail, logistics, and residential.

According to IG Australia, the Australian REIT market was worth around A$144.5 billion in 2023, so you can see that investors are pretty confident in property-backed assets.

Recent data from Stockspot shows strong 2025 performance: the VanEck Australian Property ETF (MVA) returned 22.9%, while Vanguard’s VAP and SPDR’s SLF delivered 15.9% and 14.3%, respectively.

Some popular options for beginners include:

• Vanguard Australian Property Securities ETF (VAP) – for getting broad exposure to ASX-listed property.

• Charter Hall Social Infrastructure REIT (CQE) – which invests in schools and healthcare facilities.

• HomeCo Daily Needs REIT (HDN) – which focuses on retail centres and community hubs.

As things stand, most A-REITs are offering around 5-7% annual yields, and with a bit of patience, you could see total long-term returns of 7-10% – that’s income plus capital growth. And with a $100,000 portfolio compounding at 7% annually, you could see that grow to around $387,000 in 20 years.

Of course, there are some risks to be aware of with property funds – interest rate rises and market cycles to name just two. But all in all, property funds remain one of the most solid options in Australia for building long-term wealth and generating a reliable income.

Superannuation and Voluntary Contributions – Building Long-Term Wealth

If you’re thinking about investing $100,000 in Australia, adding it to your superannuation could be one of the smartest things you can do for your long-term wealth. Super is a government-backed system designed to help Australians save for retirement, and it comes with tax advantages and steady compounding growth.

To get started, you need to understand how super works. There are two types of contributions you can make: 

• Concessional contributions (before-tax) which include salary sacrifice and are taxed at 15%

• Non-Concessional contributions (after-tax) which come from your savings and grow tax-free inside your fund. 

Australia’s super sector remains one of the strongest in the world. Data from APRA shows that funds returned 5.9% in the year to March 2025, with balanced portfolios averaging 8.8% and high-growth options reaching 11.7%. 

Over the past decade, most diversified funds have delivered 7–9% annual returns, outperforming inflation and providing stable long-term results.

Some of the best of the best in Aussie super funds are:

• AustralianSuper’s Balanced Option – that’s a seriously strong 10-year average of 7.9% p.a for you.

• Aware Super’s High Growth – in the past 15 years they’ve averaged 9.0% p.a.

• Hostplus’s Indexed Balanced – theirs is a very popular fund that does low fees and consistent results very well.

If you’re just starting out in super, your first port of call should probably be choosing a low-fee fund with a good track record – and make sure the investment mix you pick lines up with how much risk you’re comfortable with – so, conservative, balanced or growth. Even chipping in small amounts regularly can really boost your super balance.

At 7% on average, you can see just how much difference disciplined saving can make – your $100,000 could grow to roughly $387,000 in 20 years – which is a pretty clear illustration of just how well super can help you build up your long-term financial strength.

Micro-Investing & Robo-Advisors – the Simple Way to Grow Your Wealth

If you’re new to investing and want to keep things simple, micro-investing platforms and robo-advisors are two of the best ways to grow your wealth in Australia. 

They both use clever tech to manage a diversified portfolio for you – which makes them very appealing to people who’d rather not get too involved in the nitty-gritty of their investments.

Start by getting a feel for how they work. Micro-investing apps like to round up spare change or small deposits into exchange-traded funds (ETFs). 

Robo-advisors on the other hand use algorithms to create and automatically rebalance your investment portfolio based on how much risk you’re willing to take and what your goals are.

There are a few platforms that do things well. For instance, Raiz – one of the most popular ones – has over $1.5 billion to play with for more than 315,000 users and lets you start investing from as little as $5.

Stockspot is another robo-advisor that offers customised portfolios built from ETFs and has been averaging 3-4% annual returns even in tough market times.

Other players in the market include Spaceship, Pearler, CommSec Pocket, and Sharesies which appeal to younger investors because they make investing super easy with mobile apps and transparent fees.

We know from ASX data that around 7% of Australian online investors are already using robo-advisors, while micro-investing accounts have zipped past 1.3 million nationwide – which just goes to show how quickly more and more people are getting into these kinds of investments.

When you start out, choose a platform that fits your risk level, compare the fees and set up regular automatic deposits. You can start small and then keep adding to it – maybe do it in a lump sum or smaller, recurring investments – until you get to your $100,000 goal.

Long-term returns for balanced robo portfolios typically sit between 5% and 8% a year, depending on how the markets do and what mix of assets you’re using. 

While short-term market ups and downs might affect the numbers, the key to success is consistent investing and making the most of the returns you get – and as long as you keep at it, you can turn a $100,000 portfolio into a seriously valuable long-term asset through a combination of discipline and clever use of technology.

Peer-to-Peer (P2P) Lending

Looking for an alternative to savings or shares? Peer-to-Peer (P2P) lending is a way to grow your money in Australia. With $100,000 to invest, you can lend to individuals or businesses through regulated online platforms and earn interest.

P2P platforms act as intermediaries, matching your funds with borrowers looking for loans. You can spread your investment across many loans, reducing risk and getting regular repayments.

Popular Australian platforms include Plenti, consumer and green loans up to 8% per annum; SocietyOne, one of the country’s longest running P2P providers; and Marketlend, business loans with added credit protection. Most platforms allow you to start with small amounts before committing larger sums.

The P2P market in Australia is growing, with more investors and loan volumes each year.

According to Plenti, investors have earned 5-8% p.a. returns depending on loan type and borrower credit rating. But as MoneySmart notes, returns are not guaranteed and investors face the risk of borrower defaults or delayed repayments.

As a beginner, diversify across dozens of loans instead of funding just a few. Read each platform’s disclosure documents, understand fees and look for protection mechanisms like Plenti’s “Provision Fund.”

Alternative Investments (Gold, Crypto, etc.)

Got $100,000 to invest in Australia? Allocate some of it to alternative investments like gold and cryptocurrency to add diversification and long term growth to your portfolio.

These assets move differently to shares or bonds so are useful during market volatility.

Before you invest, decide how much of your portfolio to allocate — typically 5-15% is suitable for most investors. Alternatives can be rewarding but come with higher risk and bigger price swings so balance is key.

Gold and Precious Metals

Gold has been a safe haven asset for a long time. According to the Minerals Council of Australia, gold export earnings grew 42% to AUD 47 billion in 2024-25, with forecasts to reach AUD 60 billion by 2026.

In Australian dollars, gold prices have gone from under AUD 500 to over AUD 5,400 per ounce over the last 20 years. You can buy physical gold or use ETFs like the Global X Physical Gold ETF (GOLD) for easier access and liquidity.

Cryptocurrency and Digital Assets

Cryptocurrency has become a major emerging investment category. Research from IMARC Group shows the Australian crypto market could grow from USD 975 million in 2024 to USD 8.25 billion by 2033, a CAGR of nearly 27%.

But crypto prices are volatile and investors need to understand tax rules, security practices and regulatory changes.

Returns and Considerations

Gold has risen 38% in AUD terms over the last year, crypto returns vary by asset and timing.

A diversified $100,000 portfolio with small allocations to gold and crypto could deliver 7-10% p.a. returns over time — growth and resilience in uncertain markets.

FAQs

How much do I need to start investing in Australia?

You don’t need thousands to start investing in Australia. Many platforms now let you start with $5–$100.

For example, Raiz and Spaceship Voyager allow micro-investments using spare change, while CommSec Pocket starts at $50 per trade.

According to the ASX Australian Investor Study 2023, 51% of new investors started with less than $2,000, so investing has never been more accessible. The key is consistency — small, regular contributions can outperform one-off lump sums over time through compounding.

Starting early, even with small amounts, gives your investments more time to grow and smooths out market volatility.

What is the safest investment for beginners?

If you’re starting out, the safest options are high-interest savings accounts, government bonds, and diversified ETFs. These products prioritise capital preservation while offering steady, predictable returns.

As of 2025, Canstar reports that savings accounts in Australia pay up to 5.15% p.a., while 10-year Australian Government Bonds yield around 4.29%. 

ETFs that track large indices like the ASX 200 give you exposure to the top companies with less risk than owning individual stocks.

According to BetaShares, ETF assets in Australia grew 38.8% in 2024 to $239 billion, so Australians are increasingly turning to low-cost, stable investments.

Are ETFs or shares better for long-term growth?

For long-term investors, ETFs generally outperform individual stock picking because they spread risk across many companies and sectors.

Over the past decade, the S&P/ASX 200 ETF (ASX: STW) averaged 8.7% annual returns, while global ETFs like Vanguard’s VGS delivered around 10%. Only 17% of individual shares beat their benchmark over ten years (Morningstar, 2024).

ETFs are easier to manage, have lower fees and rebalance automatically, making them perfect for building wealth over time.

While shares can deliver higher returns, they require more research, discipline and risk tolerance — something many beginners lack initially.

Can I lose all my money in ETFs or managed funds?

Losing all your money in ETFs or managed funds is very rare. These investments hold baskets of assets so even if one company goes bust the impact is limited.

During the 2020 COVID-19 market crash the ASX 200 fell 36% but by the end of 2021 it was back up again.

Investors who stayed in instead of selling out made good money as the market recovered, with 12.1% growth in 2023 and 9.4% in 2024.

The real risk is panicking during downturns. Staying patient and diversified helps protect your capital and get through the next market cycle.

How do taxes work on investment income in Australia?

Investment income in Australia is taxed differently depending on the type. Dividends from Australian shares come with franking credits to reduce double taxation.

Capital gains are taxed at your marginal rate but holding assets for more than 12 months gets you a 50% CGT discount. Interest and rent is taxed as regular income.

The ATO (2025) says over 9.6 million Australians declare investment income each year, with nearly 45% of them claiming capital gains discounts.

Investors can reduce tax impacts by using super, ETFs with franking credits or tax-effective funds — strategies that boost after-tax returns and long term growth.

Originally Published: https://www.starinvestment.com.au/best-things-to-invest-in-for-beginners-australia-2025/