THE INVESTMENT PLAYBOOK
Your money.
Plot twists included.
Explore 14 investment types, spot suspicious pitches and predict what happens next. Small challenges. Useful discoveries. No finance degree required.
Australian perspective · Reviewed 3 November 2026 · No product rankings or personalised recommendations
YOUR FIRST MOVE
Pick a starting point.
These are learning routes, not investment recommendations. Explore everything, in any order.
0 of 11 mini challenges explored
Try an answer, get the explanation, keep going.
No timer. No leaderboard. Progress resets when you leave.
Or scroll down and choose your own topic.
First, separate the asset from the packaging.
What earns the return?
Shares represent ownership; bonds represent lending; property can earn rent. Each has different sources of risk.
How do you hold it?
ETFs and managed funds can hold many kinds of assets. Look through the wrapper to the holdings, costs and rules.
What rules surround it?
Super has contribution, tax and access rules. Its investment risk still depends on what is held inside.
CHOOSE A TOPIC
What’s behind the label?
Tap a card to open it. Try the quick challenge, then unfold the field notes when you want the detail. Categories are not risk rankings.
ASSETS / FIELD NOTES
Cash & term deposits
Cash accounts are deposits with a financial institution. A savings rate may change; a term deposit generally fixes the rate for an agreed term.
Open the field notes: returns, risks, questions & costs
Where returns come from
Interest. Inflation and tax can reduce its purchasing power.
What can go wrong
- Bonus-rate conditions may be missed.
- Early access to a term deposit may require notice and reduce interest.
Questions worth asking
- Which legal bank holds the deposit—not just which brand?
- When is interest paid, and what happens at maturity?
Costs to inspect
Linked-account charges, early-access adjustments and the opportunity cost of locking in a rate.
Savings access depends on account terms; term deposits restrict early withdrawal.
The Australian Financial Claims Scheme covers eligible AUD deposits up to $250,000 per account holder per ADI—not per account or brand. Investment funds are not bank deposits.
Your turn. What do you think?
Two accounts at the same ADI automatically double FCS protection.
Reveal the explanation
The limit is aggregated per account holder per ADI, subject to the scheme’s rules.
Read more: APRA: eligible accounts · Moneysmart: term deposits
ASSETS / FIELD NOTES
Government bonds
A bond is a loan to a government. A conventional fixed-rate bond pays coupons and an amount at maturity under its terms. Australian Commonwealth, state and foreign government issuers have different risks.
Open the field notes: returns, risks, questions & costs
Where returns come from
Coupons plus any price gain or loss. The purchase price matters.
What can go wrong
- Fixed-rate bond prices generally fall when market yields rise.
- Longer-duration bonds are usually more sensitive; foreign bonds may add currency and sovereign risk.
Questions worth asking
- Is the rate fixed, floating or inflation-linked?
- What are the maturity, duration, price and yield?
Costs to inspect
Brokerage, dealer spreads and custody charges can reduce the return.
An early sale receives the available market price, which may be below your purchase price.
A government bond is not the same as cash. A quoted coupon is not your total return.
Your turn. What do you think?
If market yields rise, an existing fixed-rate bond’s price generally…
Reveal the explanation
Its fixed payments become less attractive relative to newly available yields, all else equal.
Read more: RBA: bonds and the yield curve · Moneysmart: bonds
ASSETS / FIELD NOTES
Corporate bonds
You lend to a company under specified terms. Senior, subordinated, secured and unsecured claims have different rights and repayment priorities.
Open the field notes: returns, risks, questions & costs
Where returns come from
Coupons and changes in market value. Repayment depends on the issuer meeting its obligations.
What can go wrong
- Default can cause missed payments and capital losses.
- Credit spreads can widen even when benchmark rates are unchanged.
- A buyer may be unavailable when you want to sell.
Questions worth asking
- Can operating cash flow service debt?
- What ranks ahead of you, and what protection do covenants provide?
- Is the quoted yield to maturity or to a possible call?
Costs to inspect
Dealer margin, bid–offer spread, custody and transaction costs; compare an all-in price.
An expected call date is not necessarily a firm maturity or repayment promise.
“Secured” does not mean loss-proof. Recovery depends on collateral value, ranking and enforcement costs.
Your turn. What do you think?
A higher coupon automatically means a safer bond.
Reveal the explanation
A higher payment can compensate for greater credit, liquidity or structural risk.
Read more: Moneysmart: bonds · Moneysmart: notes and debentures
ASSETS / FIELD NOTES
Shares
A share represents ownership in a company. Ordinary shareholders participate in its fortunes and generally rank behind creditors if it fails.
Open the field notes: returns, risks, questions & costs
Where returns come from
Dividends, if declared, and changes in the share price.
What can go wrong
- Prices can fall sharply and dividends can stop.
- One company, sector or country can dominate your exposure.
- Overseas holdings introduce currency risk.
Questions worth asking
- How does the business earn cash, and how much debt does it carry?
- Does the price already assume strong growth?
- How would this holding overlap with other investments?
Costs to inspect
Brokerage, currency conversion, platform costs and tax. Frequent trading increases friction.
Listed shares trade when markets are open, but a listing does not guarantee a buyer or a stable sale price.
A familiar brand is not automatically an attractively priced investment.
Your turn. What do you think?
A dividend is guaranteed because it was paid last year.
Reveal the explanation
Payments depend on the company’s position and decisions; past payments are not a promise.
Read more: Moneysmart: choosing shares · ASX: shares
VEHICLES / FIELD NOTES
ETFs
An exchange traded fund pools investors’ money and trades on an exchange. It can hold shares, bonds or other exposures; some track an index and others are actively managed.
Open the field notes: returns, risks, questions & costs
Where returns come from
Underlying asset returns, less fees and trading costs.
What can go wrong
- A narrow theme or single-asset ETF can be concentrated.
- Currency, derivatives, leverage and counterparty risks depend on the structure.
Questions worth asking
- What does it actually hold and how are weights set?
- Is it physical, synthetic, leveraged or inverse?
- How does its trading price compare with net asset value?
Costs to inspect
Management costs, brokerage, spreads and any platform or currency charges.
Exchange trading offers a route to sell, but liquidity and spreads can deteriorate.
ETF describes a structure, not a risk level. Owning several similar ETFs may provide little extra diversification.
Your turn. What do you think?
Every ETF is a broadly diversified share fund.
Reveal the explanation
Some focus on one sector, asset or strategy, and some use complex exposures.
Read more: Moneysmart: ETFs
VEHICLES / FIELD NOTES
Managed funds
Investors pool money under a fund strategy. You usually own units or an interest in the fund rather than its individual assets. ETFs are one type; here the focus is unlisted funds.
Open the field notes: returns, risks, questions & costs
Where returns come from
Distributions and changes in unit value, driven by holdings and strategy.
What can go wrong
- Underlying assets can lose value.
- Manager decisions, leverage and concentration can add risk.
- Withdrawals may be restricted or suspended.
Questions worth asking
- What is the mandate, benchmark and actual portfolio?
- How are assets valued?
- What can trigger withdrawal limits?
Costs to inspect
Management, performance, administration and entry/exit costs can stack up. Check performance-fee hurdles and calculation terms.
Dealing frequency is not a guarantee of access; read notice, lock-up and suspension rules.
A smooth published unit price does not prove that underlying assets are low risk.
Your turn. What do you think?
A monthly withdrawal window guarantees payment within a month.
Reveal the explanation
Liquidity provisions may permit delays, limits or suspensions.
Read more: Moneysmart: managed funds · Moneysmart: choosing a fund
ASSETS / FIELD NOTES
Direct property
You own a property directly and bear its operating responsibilities. Residential and commercial property have different tenants, leases and market drivers.
Open the field notes: returns, risks, questions & costs
Where returns come from
Rent after expenses and any increase or decrease in sale value.
What can go wrong
- Vacancy, repairs and tenant problems can interrupt cash flow.
- Borrowing increases exposure to interest rates and losses.
- One building creates concentration and can take time to sell.
Questions worth asking
- What remains after realistic vacancy and maintenance costs?
- Could repayments be met if rent stopped?
- What do inspections, lease terms and local supply reveal?
Costs to inspect
Purchase and sale costs, financing, rates, insurance, management, maintenance and applicable taxes.
Selling generally involves time and significant transaction costs; you cannot usually sell a small slice of a house.
Gross rental yield is not the net return. A tax deduction does not make an economic loss disappear.
Your turn. What do you think?
Gross rent alone shows whether a property is cash-flow positive.
Reveal the explanation
Expenses, vacancies and financing must also be considered.
Read more: Moneysmart: property investment
VEHICLES / FIELD NOTES
Property funds & REITs
You invest through a property fund rather than buying a building yourself. It may hold offices, warehouses, shopping centres or development projects. Listed and unlisted structures differ.
Open the field notes: returns, risks, questions & costs
Where returns come from
Distributions and changes in fund value, after costs.
What can go wrong
- Debt refinancing, vacancies and falling valuations can hurt returns.
- Development projects add construction risk.
- Unlisted funds can restrict exits; listed prices can fall sharply.
Questions worth asking
- How much debt is due soon?
- How concentrated are tenants, locations and lease expiries?
- Are distributions funded by operating cash or other sources?
Costs to inspect
Management, acquisition, disposal and performance fees, plus property and financing costs.
Listed units can be sold on-market at the available price; unlisted withdrawal rights depend on fund terms.
An appraisal is not a guaranteed sale price. A listed unit price can differ from reported asset backing.
Your turn. What do you think?
All property funds allow daily withdrawals.
Reveal the explanation
Some lock money up or permit withdrawal restrictions and delays.
Read more: Moneysmart: property funds
COMPLEX / FIELD NOTES
Private credit
Capital is lent privately to businesses or projects, often through a fund. Some arrangements provide direct loan exposure; legal rights depend on the structure.
Open the field notes: returns, risks, questions & costs
Where returns come from
Borrower interest and fees, less defaults, expenses and manager charges.
What can go wrong
- Borrowers may miss payments or default.
- Modelled valuations may react slowly to deterioration.
- Fund borrowing, related-party dealings and concentrated loans add risk.
Questions worth asking
- Who owes the money and what ranks ahead of the claim?
- How are arrears, extensions and capitalised interest reported?
- What security exists, and who independently values it?
Costs to inspect
Check all fee layers, including borrower fees retained by the manager.
Loan assets may be difficult to sell; fund withdrawals can be limited even if income is paid monthly.
Regular distributions do not make private credit a term deposit. It is not covered by the deposit FCS.
Your turn. What do you think?
A stable unit price proves the loans have not become riskier.
Reveal the explanation
Infrequent or model-based valuations can obscure changes in economic risk.
Read more: Moneysmart: private credit
COMPLEX / FIELD NOTES
Hybrids & capital notes
These securities combine debt-like and equity-like features. Terms vary significantly between issues; a bank capital note is not a bank deposit.
Open the field notes: returns, risks, questions & costs
Where returns come from
Distributions and market price changes, subject to contractual conditions.
What can go wrong
- Payments may be deferred or cancelled under the terms.
- Some instruments can convert into shares or be written off.
- Subordination and long or uncertain repayment dates increase risk.
Questions worth asking
- Which conversion or loss-absorption triggers apply?
- Do missed distributions accumulate?
- Is a call optional, and is regulatory approval needed?
Costs to inspect
Brokerage, spreads and any custody costs; quoted yields depend on assumptions.
An exchange listing does not assure liquidity. An expected call is not a guaranteed exit.
The issuer’s recognisable name does not remove the security’s loss-absorption features.
Your turn. What do you think?
A bank capital note has the same protection as an eligible deposit.
Reveal the explanation
Hybrids can absorb losses and are not covered by the deposit FCS.
Read more: Moneysmart: hybrids
ASSETS / FIELD NOTES
Gold & commodities
Exposure may come from physical metal, a fund or derivatives. A mining company share is a business investment, not direct ownership of the commodity.
Open the field notes: returns, risks, questions & costs
Where returns come from
Primarily price movements for physical gold. Other structures can produce different returns.
What can go wrong
- Commodity prices and exchange rates can move sharply.
- Storage, custody or counterparty failures can matter.
- A futures-based product can behave differently from the spot price.
Questions worth asking
- Do I own metal, a fund interest or a contractual claim?
- Is the exposure currency hedged?
- Does it use leverage or futures?
Costs to inspect
Dealer spreads, storage, insurance, fund fees and derivatives costs, depending on structure.
Physical resale and exchange-traded liquidity depend on the product and market.
Gold is not a guaranteed inflation hedge over every period; owning physical gold does not itself generate interest or dividends.
Your turn. What do you think?
A gold-mining share is identical to holding physical gold.
Reveal the explanation
The company also carries operating, financing and management risks.
Read more: ASX: exchange traded products · Moneysmart: futures
COMPLEX / FIELD NOTES
Crypto assets
Crypto assets use digital networks and cryptography. Tokens have different purposes and rights; owning one does not necessarily give you ownership of a business or an enforceable income stream.
Open the field notes: returns, risks, questions & costs
Where returns come from
Price changes; some arrangements offer staking or lending rewards with additional risks.
What can go wrong
- Large price swings and total loss are possible.
- Exchange failure, scams, lost keys and technology failures can prevent recovery.
- A stablecoin can lose its peg.
Questions worth asking
- What legal rights does the token provide?
- Who controls the keys and what happens if the platform fails?
- How are withdrawals and rewards funded?
Costs to inspect
Trading spreads, network, withdrawal and custody fees; taxation may apply.
24-hour trading does not guarantee liquidity or access during disruption.
“Stable”, “yield” and “regulated platform” do not guarantee capital protection or recovery.
Your turn. What do you think?
A stablecoin cannot lose value because its name says stable.
Reveal the explanation
Backing, redemption, liquidity and issuer risks can cause loss of the intended peg.
Read more: Moneysmart: crypto assets · ASX: crypto introduction
STRUCTURES / FIELD NOTES
Super investment options
Superannuation is a retirement savings structure, not a single asset class. Its investment options can hold shares, property, bonds, cash and other assets.
Open the field notes: returns, risks, questions & costs
Where returns come from
Returns depend on the chosen underlying investments, costs and applicable tax.
What can go wrong
- Investment losses remain possible inside super.
- Similarly named options can have different asset mixes.
- Switching after a fall can crystallise losses and change future exposure.
Questions worth asking
- What assets sit behind “balanced” or “growth”?
- How do fees, insurance and investment risk compare?
- What access rules apply to my circumstances?
Costs to inspect
Administration and investment fees, transaction costs and insurance premiums can affect the balance.
Changing an investment option is different from withdrawing super; access is subject to legal conditions.
A retirement account is not automatically low risk. Fund labels are not standardised portfolio recipes.
Your turn. What do you think?
Super is an asset class like shares or bonds.
Reveal the explanation
It is a structure that can hold a mix of asset classes.
Read more: Moneysmart: super investment options
COMPLEX / FIELD NOTES
Options & futures
Derivatives are contracts linked to an underlying asset or measure. An option grants rights under its terms; a futures contract creates obligations. They may be used for hedging or speculation.
Open the field notes: returns, risks, questions & costs
Where returns come from
Changes in contract value; results depend on price movements, time, volatility and contract design.
What can go wrong
- Leverage can magnify losses; some positions can lose more than the initial amount committed.
- Margin calls can force additional payments or closure.
- Expiry and settlement obligations are crucial.
Questions worth asking
- Am I buying a right or taking on an obligation?
- What is the maximum loss, and can it be unlimited?
- How and when does settlement occur?
Costs to inspect
Brokerage, spreads, premiums, financing or margin-related costs, depending on the contract.
Positions may expire, require cash settlement or involve delivery. Closing out depends on liquidity.
A small initial margin does not limit your total exposure.
Your turn. What do you think?
Initial futures margin is always the most you can lose.
Reveal the explanation
Adverse moves can create further losses and margin calls.
Read more: Moneysmart: futures · Moneysmart: complex products
Read at your own pace. Learning progress is kept only while this page remains open.
COMPARE THE MECHANICS
Two investments. Different questions.
This comparison describes broad features, not which investment is better or suitable for you. Individual products can differ substantially.
THE LEARNING LAB
Plot twist. What happens next?
Choose a challenge. Make your call. Reveal the explanation—getting it wrong is part of learning.
Income ≠ total return
You receive $600 income, but your $10,000 investment is now worth $9,000. Before costs and tax, what happened?
Reveal the explanation
Imagine investing $10,000, receiving $600 in cash income and ending with an investment worth $9,000. Your combined value is $9,600: a $400 loss, or −4%, before fees and tax. A 6% cash yield did not prevent a negative total return. This example assumes no other contributions or withdrawals.
Interest rates rise
Market yields rise. All else equal, what usually happens to the price of an existing fixed-rate bond?
Reveal the explanation
An existing fixed-rate bond generally falls in price when market yields rise, all else equal. A floating coupon may reset higher, but credit and liquidity risks remain. Property borrowing costs can increase and equity valuations can also be affected; actual outcomes depend on other conditions.
I need my money now
A fund pays monthly income. Does that mean you can withdraw all your capital monthly?
Reveal the explanation
A long-term asset can become a short-term problem when cash is needed urgently. Consider the sale process, settlement, withdrawal notice, possible suspension and the price available under stress. “Monthly income” says nothing by itself about whether your capital is accessible.
Five funds, one exposure
You buy five funds that all hold the same ten companies. What have you achieved?
Reveal the explanation
Suppose five funds each hold the same large companies. Five product names have not created five independent sources of risk. Compare underlying holdings, sector and country exposure, currencies and debt. Diversification reduces concentration; it does not eliminate losses.
Borrowing magnifies the move
A $100,000 asset has $60,000 debt. The asset falls 20%. Before costs, what happens to your $40,000 equity?
Reveal the explanation
A simplified $100,000 asset funded with $60,000 debt leaves $40,000 equity. If the asset falls 20% to $80,000 and debt stays at $60,000, equity falls to $20,000: a 50% loss before costs and interest. Further falls can leave debt exceeding asset value.
Small fees, many years
In the example below, reducing annual growth from 5% to 4% for 20 years makes the final $10,000 investment…
Reveal the explanation
In a simplified annual model, $10,000 growing at 5% for 20 years becomes about $26,533. At 4% it becomes about $21,911: roughly $4,622 less. This illustrates a one-percentage-point reduction in net annual growth, not a specific product fee formula; no tax, contributions or inflation are modelled.
SPOT THE SIGNAL
Would you pause here?
Five fictional pitches. Pick the signal you see, then open the reasoning. You are judging the wording—not approving an investment or declaring someone a scammer.
“Guaranteed 18%. Zero risk.”
The ad says returns are guaranteed but does not clearly identify the guarantor or explain how the guarantee could be met.
Reveal the reasoning
Pause. A high-return, no-risk promise is a warning sign. Find out who stands behind it and verify the offer independently. A guarantee is only as useful as its terms and the guarantor’s ability to pay.
“You have 20 minutes.”
A caller says the opportunity disappears unless you transfer money before the call ends.
Reveal the reasoning
Pause. Urgency can stop you checking the provider, product and payment details. End the pressure, independently verify and take time to read the documents.
“You could lose capital.”
The document explains loss scenarios, fees and withdrawal restrictions and gives you time to read it.
Reveal the reasoning
Useful disclosure—not a green light. Being open about risk is more informative than pretending it does not exist, but you still need to verify the provider and assess the actual terms.
“Send it to this new account.”
Payment instructions suddenly change by email. The sender asks you not to call your usual contact.
Reveal the reasoning
Pause. Independently contact the provider using a number you already trust. Do not use contact details supplied in the suspicious message to verify that message.
“Here is how the fees work.”
The provider gives a clear fee breakdown and answers questions without rushing you.
Reveal the reasoning
Useful behaviour—not proof of legitimacy or suitability. Verify the provider independently and compare the complete documents, not just a friendly explanation.
These are invented examples. A warning sign is a reason to investigate, not a legal finding. Clear disclosure does not remove investment risk.
BEFORE YOU COMMIT
A checklist you can take away.
Tick items you can explain. Completion records learning; it is not an approval, risk score or suitability assessment. Nothing is sent or saved by these controls.
0 of 10 questions considered.
Pause at pressure. Guaranteed high returns, urgency, secret opportunities and unusual payment instructions deserve scrutiny. Verify the provider through independently obtained details. A licence or registration is not a guarantee of investment performance. Read ASIC Moneysmart’s checks before investing.
Words you will keep seeing.
Yield
Income or a return measure expressed relative to a price or investment amount. Check the definition: coupon rate, distribution yield and yield to maturity are different measures.
Total return
Income plus capital gains or losses over a period, with the treatment of fees, tax and reinvestment stated. It is not the same as cash paid out.
Duration
A measure related to a bond’s sensitivity to changes in yield. It is not simply another name for maturity.
Liquidity
The ability to turn an asset into cash promptly at a reasonable price. Frequent pricing does not by itself establish liquidity.
Credit risk
The possibility that a borrower or counterparty fails to meet obligations, causing missed payments or losses.
Net asset value (NAV)
The value of a fund’s assets less its liabilities, often expressed per unit. A traded price can differ, and valuations may rely on estimates.
Gearing or leverage
Using borrowing or contractual exposure to magnify the effect of asset movements on your money. It can increase losses as well as gains.
Real return
Return adjusted for inflation. A positive dollar return can still mean reduced purchasing power.
PDS, prospectus and offer documents
Documents explaining an investment and its terms, risks and costs. Which document is required depends on the product and offer. Read the actual terms, not just marketing summaries.
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