What to do with AUD 6000?

Hey, hope you are all having a good day.

I have PKR 700,000 which was equivalent to AUD 7000 last year. I decided to keep that as it is but today as of now, I saw that its now worth AUD 6060.

It means I kept this money for a year and lost about AUD 940. I’m afraid if i continue to keep it, it will depreciate further.

I want to know how can I utilise this money and keep it somewhere where it doesnt lose its value? I’m thinking of buying gold which is getting expensive day by day.

I live in Australia. Any suggestions for me?
Thanks.

Why not just invest it in a diversified portfolio of sorts. (Stocks/mutual funds, etc.)

Or to play it safe, transfer it to AUD and open a savings account lol (investing typically has better yields if you know what your looking for long term)

StreamerStartup said:

Why not just invest it in a diversified portfolio of sorts. (Stocks/mutual funds, etc.)

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Problem is I have never invested in anything like that. I dont even have basic knowledge of it. Should I still go for it?

Why did you keep it in Rupees? If you live in Australia you should have exchanged it right away as AUD is a much stronger coin that won't depreciate and you can use it where you live.
I recommend investing half of it in a smart business and keep the other half in AUD for any emergency.

Stocks are on sale now by 1/5th of the price some of em. Buy cruise lines and airlines and maybe hotel stocks

Zom said:

Problem is I have never invested in anything like that. I dont even have basic knowledge of it. Should I still go for it?

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Just look in your area for people who do this type of stuff. You can try to find financial advisors who work at firms in your area (avoid banks, I find their useless when it comes to doing stuff like this)

Find businesses who have been around for a long time, it shows they know what they are doing or else their clients would leave.

You didn't really "lose" money in the sense that 700k PKR is still 700k PKR (minus inflation)... but yes if you are domiciled in Australia for the foreseeable future, you should convert it to AUD as that is your relative currency.

In terms of what you should do with it, it depends on your time horizon for the money. If you need to access the money as liquid cash within the next 12 months, there's not really anything that makes sense to invest it into.

If you have a > 7 year time horizon, the S&PASX200 has returned on average ~11.5% p.a. over the last 30 years, so a seven year period allows for a full market cycle to play out, meaning you can reliably conclude that over that period a 30 year average should repeat itself.

If it's between 1 - 7 years, you'd weight more toward cash and corporate bonds (you can buy listed bonds on the ASX, look up XTBs) with a smaller allocation to an index ETF.

I'd never suggest investing everything just in the top 200 unless you're over 55 years old, so look into some good global or thematic ETFs such as iShares, Vanguard, and Betashares. Don't buy any individual stocks, stick with ETFs there's no reason to take stock specific risk post 2015 when ETFs really expanded their range and management fees approached zero.

I would use a low cost broker such as StockSpot if you want to hold the physical equity/bonds on HIN, or if you don't care (which I wouldn't for such a small amount) try IG Stockbroking (not the CFDs!) as they give you global reach and open up all the juicy US-listed ETFs as well.

Hope that helps.

Can somebody give examples where we can buy stocks without leverage and daily overnight fees etc

Buy a kangaroo.

Right...Buy Gold, the valuse will increase.

HustleTong said:

Buy a kangaroo.

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One that dances.

Well, inflation! If it becomes anywhere near zero some day, Pakistan will be financially ruined. Have trust in your country may be. Imran Khan is doing a good job as I have heard.

That being said, investing in business/assets might increase your corpus, or may ruin it. Investing in stuffs like Gold and Properties might be worth the money. As for Properties, it will totally depend on what you are doing. Gold on the other hand would be much more future proof, but do not expect high returns lol. You could also do some FD but I am not sure if Islamic countries allow that. Best of luck!

Edit: You could also exchange your PKR to AUD. That will solve your problem for now (you might lose some money because of the exchange rates though).

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