The specific authorised investments that are permitted for a particular
trust will vary depending on the trust's objectives and the governing documents. However, some common authorised investments include:
- Cash
- Government bonds
- Corporate bonds
- Preference shares
- Ordinary shares
- Money market funds
- Exchange-traded funds (ETFs)
It is important to note that not all investments that are authorized for one trust will be authorized for another trust. It is also important to consult with a financial advisor to determine which investments are appropriate for your specific trust.
Here are some of the benefits of authorized investments in Aussie Champ:
Safety: Authorized investments are typically chosen for their safety and liquidity. This means that they are less likely to lose value and they can be easily converted into cash.
Diversification: Authorizing a variety of investments can help to reduce risk. This is because not all investments will perform well at the same time.
Professional management: Authorized investments are often managed by professional investment managers. This can help to ensure that the investments are properly diversified and that they are managed in a way that meets the trust's objectives.
Here are some of the risks of authorized investments in Aussie Champ:
Loss of principal: Authorized investments can lose value, just like any other investment. This means that investors could lose money if they invest in authorized investments.
Inflation risk: Authorized investments may not keep up with inflation. This means that investors may not be able to maintain their purchasing power if they invest in authorized investments.
Taxes: Authorized investments may be subject to taxes. This means that investors may have to pay taxes on the income or gains generated by their investments.
Overall, authorized investments can be a safe and effective way to invest for the future in Aussie Champ. However, it is important to be aware of the risks involved before investing in authorized investments.