Money Magazine

Money Magazine March 2021

Money magazine is Australia’s longest-running, highest-selling and most-read personal finance magazine. Money magazine provides credible, independent, easy-to-understand financial advice to help its readers save money and make the most of their investments.

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11 Numéros

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7 min
on the digital bandwagon

Bitcoin’s price has soared, but buyers who view it as a safe haven or growth investment are in for a volatile rideSTORY DAVID THORNTON After a few years out of the spotlight, Bitcoin is back. Last year, its price skyrocketed more than 600% to $53,114 before coming off the boil by about 20% in the first months of 2021. It’s made many a millionaire, but don’t let that fool you. The jury is still out on whether it will redefine finance or blow over like a house of cards. Whereas the inflows in 2017 came mostly from speculators, this time it’s largely driven by overseas institutional investors. “[Institutions are] attracted by the good returns that the digital asset class is currently offering but, more importantly, by the huge future potential it offers,” says…

1 min
book of the month

ONLINE INVESTING ON THE AUSTRALIAN SHAREMARKET by Roger Kinsky. Wiley, RRP $32.95 The fifth imprint of this book provides revised information to help readers make profitable online trading and investment decisions. It starts with the basics: what types of stocks to focus on, how to choose an online broker, monitoring and reviewing your portfolio and trading. For the more experienced, it offers tips on fundamental analysis, online charting and using online indices to improve profitability.. The book is well laid out with tips in each chapter that act as warnings for investors. The detail is excellent and everything is explained in simple, jargon-free terms. Five readers can win a copy. In 25 words or less tell us what you would like to learn about online investing through this book. Enter online at au/win or…

1 min
cut the cost of convenience

More than a third of Australians have no clue what their credit card interest rate is, while those who do are paying more than 10%. An independent poll undertaken by market researcher Fiftyfive5 and commissioned by Defence Bank also found that a quarter of respondents plan to use the plastic more in 2021. This is despite 20% finding it difficult to pay off credit card debt after the Christmas splurge. “It’s time to break the cycle of paying unnecessarily high credit card interest rates,” says Defence Bank CEO David Marshall. “We see from these results that Australians are frustrated by the rates they’re paying and the bells and whistles they either can’t use or don’t need. Consumers need to stop paying 20% for the convenience of a basic credit card, when genuine low-rate…

2 min
through the pain barrier

The start of 2021 brings with it the milestone of a record high for the emerging markets index (MSCI EM). This achievement can also be framed as a full recovery of the same index from its previous peak set in late 2007 just before the GFC took global markets by their focal point and gave them an almighty shake. While markets collectively recovered in 2014, emerging markets continued to suffer from a case of the wobbles despite the unshakeable economic growth of particularly the 25 major economies that significantly make up the index. Our reading of the markets and discussions with various types of investors, from retail to institutions, suggests there is ongoing momentum towards emerging markets and flows are at a multi-year high. Nevertheless, it is time for investors to…

1 min
etfs rake in the cash

The Australian exchange traded fund industry went gangbusters in 2020, according to the BetaShares ETF review, as investors look to the investment class as a way to weather high volatility. The industry finished the year over 50% higher than it started it, with total assets lifting from $62 billion to $95.2 billion, an all-time high. “Perhaps the most striking feature of the industry’s growth in 2020 is that it was entirely driven by net inflows rather than asset value appreciation, with $20.5 billion of new money flowing into the industry over the course of the year,” says BetaShares CEO Alex Vynokur “This represents by far and away the highest annual inflows on record, representing a 59% increase in flows from the previous year’s figure.” Most of this money came from individual investors, rather than…

1 min
3 funds to watch

1 Platinum Asia Fund Platinum skilfully harnesses the firm’s local expertise within a broader global context. Its regional analysts work with the team’s global sector specialists to find overlooked ideas. Platinum’s success comes from investing in companies facing temporary setbacks, or where significant positive change is under-appreciated. 2 Fidelity Global Emerging Markets Fund The strategy has a strict focus on corporate governance, sustainable business practices and robust balance sheets. This high-conviction portfolio of 30 to 50 stocks draws insights from more than 50 Fidelity analysts on the ground in emerging markets and 400 investment professionals globally. There is a focus on quality businesses and an objective to provide capital protection in falling markets. 3 Mirae Asset Asia Great Consumer Equity Fund It aims to achieve long-term capital growth by investing mainly in equities of Asian…