Hullo,
Does anyone here use debentures for short term investments? They’d give better returns than my managed fund (in the current market, and yes I know managed funds aren’t short-term investments). Just considering alternatives.
I realise that money put into debentures would be less accesible, but they’re only short term anyway.
Appreciate any comments and/or direction for more info – thanks.
Professionally I have always had good experience with debentures. If you are just parking your cash its better than term deposit. Make sure you have you have done your home work regarding the rating (Standard & Poor) and terms/conditions etc.
I have done business with Secure Investments Pty Ltd for the past three years. Great service. Their website is http://www.secureinvestments.com.au
The website also has some info on various types of money market products.
Hope this helps.
Kavita
Many thanks Kavita, will do and I’ll check out the site. [
]Hi,
For those who don’t know, debentures are debt security (ie. loans) of various time lengths issued by businesses, usually listed companies.
As the risk is higher than a bank term deposit, so too is the return offered.
Kavita’s point about looking at the independent assessed risk rating (such as S&P) is well made. No doubt there were some people who held Parmalat debentures that have just kissed their cash goodbye.
One thing to be especially mindful of is the liquidity of the investment… that is, how easily can you access your cash (sell the debenture) if you need to – and what are the costs involved.
Hope this has helped.
Bye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
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