Where to Invest in 2024

How to identify an investment strategy that’s right for you

Deciding where to invest your money in 2024 will boil down on three things: your risk appetite, your investment goals, and your current financial situation. 

There is no one-size-fits-all in identifying the best investment strategy because each person’s personality and situation are different. What’s best for someone else might not necessarily be what’s best for you. This is why it is always recommended to obtain independent financial advice tailored to your personal circumstances.

Understanding your risk appetite

Before looking at the different investment classes, you might first want to reflect upon your risk appetite.

Are you the type that wants a more stable investment with a consistent return, or are you the type who is willing to incur more risk for higher returns? 

Knowing your investment personality is crucial since you’d want to build an investment portfolio you are comfortable with rather than inadvertently investing in assets beyond your risk threshold.

Understanding your investment goals

Different people have different reasons why they want to invest. Some may be more focused on building an education fund or inheritance for their kids, others might be focused on building their retirement fund, while some want to generate passive income streams. Knowing your purpose for investing will also dictate which investment types are right for you.

Understanding your current financial situation 

There’s a saying, only invest money you can afford to lose. Investing will always entail some form of risk. All investors need to have a firm grasp of their current financial situation including income, expenses and debt.

How to make smart investments in 2024

Smart investors apply risk-management strategies to avoid getting wiped out financially should an investment go wrong. For instance, they never invest emergency funds or their savings. Furthermore, smart investors diversify their portfolio to spread their risk into different asset classes. In that way, even if some investments fail to deliver, there will be other investments in their portfolio that will still be performing. 

Why you should invest in a Pooled Mortgage Fund in 2024

If you’re looking for a great way to invest in 2024, you should consider Pooled Mortgage Funds. Investing in mortgage funds (also called private credit investments) is an investment option that is growing in Australia, in fact many of the large super funds are now investing in this asset class.  Active Property Group’s pooled mortgage fund, the PMAC Trust, provides investors with a diversified passive income stream without the need for large investment amounts.  

As the name suggests, a pooled mortgage fund pools money from multiple investors into a fund which is then lent out to multiple borrowers.

There are an average of 30+ loans in APG’s loan portfolio at any given time. All of the loans are secured by Australian real estate. 

We target to keep at least 70% of the loan portfolio as first-mortgage investments and up to 25% of second-mortgage investments to balance out conservative risk management to our investors without hampering the fund’s ability to target competitive returns. 5% of APG’s funds under management are kept as cash for liquidity purposes.

Investor returns are based on the interest payments made by borrowers within the loan portfolio and they receive their returns in the form of quarterly distribution. This style of investment is ideal for people looking to increase their revenue stream through passive income. 

For those with longer-term investment goals, investors may choose to re-invest their returns to compound their interest and grow their original capital.

To learn more about APG’s pooled mortgage fund, feel free to contact our investor relations team and they will gladly answer any of your queries.

The information in this article is of a general nature and does not constitute professional advice. The returns on the APG website are past performances of the fund, but are not a guarantee of future returns. Always seek professional advice in relation to your specific situation when deciding which of the asset classes best suit your investment needs.

If you have any questions about investing in private mortgages then please send us a message via our Contact Page.