BT Investment: Term deposits seen as safer option
Many Australians are continuing to invest their funds in term deposits rather than shares in light of the ongoing uncertainty surrounding global markets, BT Investment Management has said.
The observation came as the company, which is majority owned by Westpac, reported a cash net profit after tax of $30.9 million for the year to September 30th, or a 15 per cent rise in earnings.
BT chief executive Emilio Gonzalez suggested the result had been positive given that investment in the domestic market has been subdued.
Indeed, he pointed to the fact that about $610 billion has been invested in term deposits in Australia, meaning that such money is being kept out of the local stockmarket. Aussie investors aiming to boost their returns in the current climate could choose to compare term deposits in search of the best deals.
"Confidence in riskier asset classes, including equities, has not returned and fund flows from the retail market have not been strong," noted Mr Gonzalez.
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