Term deposits 'a useful element in investment portfolios'

Term deposits have been recommended to investors hoping to develop a diverse portfolio.

Australian Unity Investments (AUI) subsidiary Altius Asset Management's senior portfolio manager Gavin Goodhand suggested that those considering putting their money into bonds should think about placing some of their capital into a term deposit.

He told the Financial Standard that term deposits still represent a "good value" option for those looking to get a return on their money.

"Term deposits [are] a stand out opportunity as long as it's a small part of a portfolio because of diversification and liquidity," the expert stated.

Last month, Kirsty Dullahide, chair of Altius and AUI's senior representative for the firm's new bond fund, asserted that term deposits continue to be an attractive option for those looking for a "safe haven" for their cash.

This view echoes that of Synchron director John Prosser, who recently told Investor Daily that Aussies are reluctant to abandon cash investment options such as term deposits because of the safety they offer.

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