Key Factors for Investing in Australian Markets

The Gazette Review put out a list of the Top 10 Most Developed Countries of 2018 based on a metric called the Human Index Development Index (HDI), which takes into account data from the United Nations Development Programme that measures education, salary and overall health of a country. Based on the HDI and other factors affecting the list, Australia made the number four spot, making the country rife for investment opportunities in its respective markets.

Related: Australian ETF Soars as Commodities Rebound

Paul Taylor, a fund manager for Australian equities at Fidelity Worldwide Investments, outlined some key factors when deciding to invest in the Australian markets.  Moreover, Taylor discussed how his company strategizes on building its Fidelity Australian Equities Fund.

  1. Concentration: Holding at least 30 stocks
  2. Investment timeframe: 5 Years is the sweet spot
  3. Building conviction: Evolution over revolution

Taylor preached patience in the markets and emphasized that the long-term investment horizon is more optimum than the short-term.

“We’re buying the shares over a very long period of time, which means we’re not traders–we’re investors” said Taylor.  “We’re investing for the long term, which definitely helps to manage the money.”