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Every year, thousands of Australians type the same question into Google ‘What are the best investment options in Australia?’.
It’s not surprising that it’s such a common question. After all, money doesn’t grow by sitting in a savings account. And we financial advisers regularly get the same question.
But here’s the truth – there isn’t a single ‘best’ investment for everyone. The right choice depends on a few things:
- Where you are in life
- Your individual goals and aspirations
- What you want your money to do
Specifically – are you looking for growth? Income? Security? Flexibility?
Which, hopefully, makes it clear that there is no one-size-fits-all answer to this question.
So, instead of chasing a silver bullet, let’s explore the main types of investments Australians consider – and why each of them might be ‘best’ for you (or not).
Property
For decades, property has been the great Australian obsession. ‘Safe as houses’, as the saying goes.
| Pros | Cons |
| – Tangible asset that you can see and touch it – Potential for long-term growth in value – Rental income provides ongoing cash flow – Banks will lend against property more readily than shares | – Stamp duty, agent fees and legal costs are expensive – You can’t sell a bedroom if you suddenly need cash – Most of your wealth is tied to one property – Repairs and maintenance can chew into returns – Ongoing costs and taxes can add up |
There’s no doubt property can be a fantastic investment – but it’s best when included in an intentional, portfolio of investments.
Shares
Buying shares means owning a slice of a company – from big names on the ASX to smaller growth firms.
| Pros | Cons |
| – Over the long term, shares have historically delivered strong returns – Dividends – many companies pay part of their profits back to shareholders – Accessibility – online platforms make it easy to get started | – Volatility – prices go up and down, sometimes sharply – It can be hard not to panic during downturns and withdraw from the investment – Really benefits from diversification – a handful of companies can’t really dilute these risks |
Shares are a building block of most investment strategies, but they’re best suited for long-term investors who can ride out the ups and downs.
ETFs and Managed Funds
Not everyone wants to research individual companies or properties. That’s where pooled investments like Exchange Traded Funds (ETFs) and managed funds come in.
| Pros | Cons |
| – Instant diversification across many companies, sectors, or even countries – Professionally managed – you don’t have to make every decision – (Can be) low cost (especially with ETFs) | – Management fees, while lower now than in the past, still reduce returns over time – You don’t pick the individual investments – Funds can fall in value just like shares – Won’t necessarily reflect your your taxation requirements |
For many Australians, ETFs and funds can be the simplest way to get diversified exposure without the stress of choosing stocks.
Superannuation
Now strictly speaking, ‘superannuation’ is not an investment option – it’s a tax structure. You don’t really invest in superannuation so much as you invest via superannuation.
However, while it may not feel exciting, superannuation is one of the most powerful investment structures Australians have.
| Pros | Cons |
| – Concessional contributions are taxed at just 15%, often lower than personal income tax – Long-term compounding: money invested now can grow significantly over decades – Your employer is required to contribute at least 12% of your salary to super | – You generally can’t access it until retirement age – Legislative risk – rules can change with government policy – Many people ignore their super until it’s too late – Fees and taxes can add up, especially when you’re not paying attention to your retirement savings |
Super isn’t ‘just a savings account’. For most Australians, it will be their largest retirement asset – which makes it critical to manage it wisely.
Diversified approaches
The smartest investors rarely put all their eggs in one basket. A blend of property, shares, ETFs, and super can give you growth, income, and security. Diversification smooths out the bumps — when one investment is down, another might be up.
A portfolio that balances multiple investment types is far more likely to be more resilient than betting everything on one option.
So… what’s the ‘best’?
The best investment isn’t a single asset. It’s the one that matches your goals, risk tolerance, and time horizon.
Every asset has a place in somebody’s portfolio. Whether or not it’s best for yours is a question best asked of a licensed financial adviser – who can craft a solution to meet your unique, individual needs.
Because at the end of the day, investing isn’t about chasing the “best” headline option. It’s about creating a plan that actually works for you – in 2026, and for decades to come.
Visit Jordan at PlanningSolo or Find a Planner near you!
The Money & Life website is operated by the Financial Advice Association Australia (FAAA). The views expressed in this article are those of the author and not those of the FAAA. The FAAA does not endorse or otherwise assume responsibility for any financial product advice which may be contained in the article. Nor does it endorse or assume responsibility for the information.
