Investing $50,000 can be daunting, especially with countless options and potential risks.
Many new investors find themselves unsure of where to begin, overwhelmed by the choices, and worried about making the wrong decision.
Imagine having a clear strategy that simplifies your investment journey and maximises your returns.
Understanding the best ways to invest $50,000 in Australia can help you confidently grow your wealth and secure your financial future.
At Medici Invests, we specialise in creating sophisticated and accessible investment portfolios that were previously reserved for full-service clients.
This guide will explore two robust approaches to investing your $50,000, ensuring you make the most of your investment.
Strategy 1: Diversified Investment ($25k in Each Portfolio)
Our first strategy includes investing $25,000 in either our Future Shapers Portfolio or Green Horizons Portfolio and investing the remaining $25,000 into our Michelangelo Portfolio.
This strategy allows you to diversify across our more innovative and stable portfolios, reducing overall risk while positioning yourself for potentially high returns.
We’ve provided a breakdown of the differences between each portfolio below:
Future Shapers Portfolio
Ideal For: Investors seeking exposure to cutting-edge advancements and companies shaping the future.
The Future Shapers Portfolio targets innovative, future-oriented companies poised for significant growth.
This portfolio focuses on sectors such as technology, biotechnology, and renewable energy.
Investing $25,000 in this portfolio provides exposure to cutting-edge advancements and companies that are shaping the future.
Expected returns are high, but investors should be prepared for a higher level of risk due to the innovative nature of these sectors.
Green Horizons Portfolio
Ideal for: Investors passionate about sustainable initiatives but still want to see a strong return on investment.
The Green Horizons Portfolio focuses on industries and organisations at the forefront of the transition to renewable energy and best positioned to benefit from this industrial evolution.
This strategic emphasis ensures our portfolio is aligned with future growth and sustainability trends, maximising returns while supporting the global shift towards cleaner energy solutions.
This portfolio aims for steady returns with a focus on sustainability, offering a balanced risk profile.
Like the Future Shapers Portfolio, expected returns are high, but there is a higher level of risk due to the concentrated nature of the companies and sectors we’re invested in.
Michelangelo Portfolio
Ideal for: Investors who prefer predictable recurring income or don’t want to take big risks.
The Michelangelo Portfolio focuses on established, high-performing companies with a track record of stability and growth.
This portfolio includes blue-chip stocks and large-cap companies known for their reliable performance and strong market presence.
This portfolio typically has an allocation of 40% income and 60% growth. This means that 40% of the portfolio is allocated to income-generating investments, such as bonds or dividend-paying stocks, which provide regular returns.
The remaining 60% is allocated to growth-oriented investments, such as stocks or equity funds, which aim to increase in value over time.
The Future Shapers Portfolio or Green Horizons Portfolio on the other hand have a 20% income and 80% growth allocation which is a lot more aggressive but provides the opportunity to maximise your return on investment in a safer manner than investing in individual stocks.
By investing the remaining $25,000 in the Michelangelo Portfolio, you’ll be invested in a more balanced strategy that’s positioned for both stability and high returns, mitigating risks associated with market volatility and sector-specific downturns.
Strategy 2: Single Portfolio Investment ($50k in One Portfolio)
For those who prefer a more concentrated investment approach, our second recommended investment strategy is to invest the entire $50,000 into one of our specialised portfolios.
This method allows for focused growth and simplifies management by concentrating your funds in a single investment area.
You could choose one of the 3 portfolios we’ve already discussed:
Or, you could invest in either of our other 2 portfolio options:
Da Vinci Portfolio
Ideal for: Investors who want a more stable investment option while still seeing moderate returns.
The Da Vinci Portfolio is a moderate growth investment option designed for those seeking a balanced mix of income and capital appreciation.
This portfolio strategically balances risk and return with a 30% income and 70% growth allocation.
It includes a diversified mix of assets such as stocks, bonds, and property, aiming for moderate growth while providing some downside protection.
This makes it suitable for investors who prefer a stable investment with steady returns, catering to a wide range of ages and risk tolerances.
Galileo Portfolio
Ideal for: investors that are prepared to accept a higher degree of risk, or with a longer investment horizon to withstand market volatility.
The Galileo Portfolio focuses on high growth, targeting sectors with substantial long-term potential.
This portfolio embraces calculated risks for higher returns with an 80% growth and 20% income allocation.
By concentrating your entire $50,000 investment in one of these portfolios, you can align your strategy with your specific financial goals and risk appetite, leveraging Medici Invests’ expertise to navigate the investment landscape effectively.
Key Considerations for Investors
Risk Tolerance and Investment Goals
Before diving into any investment strategy, it’s crucial to assess your risk tolerance and clearly define your investment goals.
Are you looking for long-term growth, short-term gains, or a mix of both?
Understanding your risk tolerance will help you choose the right portfolios and investment strategies that align with your comfort level and financial objectives.
If you have a lower risk tolerance, investing your entire $50,000 into the Michelangelo Portfolio is a great option for stable returns.
If you want to be a bit more aggressive but not overly risky, you should consider strategy 1 and allocate $25k to the Future Shapers or Green Horizons Portfolio and allocate the other $25k to the Michelangelo Portfolio.
You could also go for strategy 2 and invest the entire $50k into the Da Vinci Portfolio if you wanted a more simplified investment strategy.
If you’re comfortable with higher risk, we recommend following strategy 2 and investing the entire $50,000 into either the Galileo, Future Shapers or Green Horizons Portfolio.
To help determine your risk appetite, we offer a risk profile questionnaire tool on our website. This tool can guide you in understanding your risk tolerance better and assist in making informed investment decisions. Remember, this information is not intended as financial advice, and the final decision ultimately depends on your personal circumstances and judgment.
Time Horizon for Investment
The length of time you plan to invest your $50,000 plays a significant role in your strategy.
If you have a long-term horizon, you may be more inclined to invest in higher-risk, high-reward portfolios like the Future Shapers or Green Horizons Portfolio.
However, if you are looking for more immediate returns or have a shorter investment horizon, the stability and income generation of the Michelangelo Portfolio might be more suitable.
Seeking Professional Advice
Navigating the investment landscape can be complex, and professional advice can be invaluable.
If you’d like to speak with us directly about what strategy would work best for you, call (03) 9637 1608 or contact us online so we can help you determine your ideal investment strategy!
How to get started!
Ready to begin your investment journey with Medici Invests?
Follow these simple steps to get started:
Step 1: Click this get started link
Step 2: Create an OpenWealth account
Step 3: Go to our products tab and select the Green Horizons portfolio
Step 4: Enter the amount of money you’d like to invest
Step 5: Choose your account type
Step 6: Answer the onboarding questions – it should take less than 5 minutes
Step 7: Transfer your funds through BPAY or via direct bank transfer
Step 8: You’re good to go! Monitor your sustainable investment portfolio through the app or online portal
It’s that simple!
