First post and a question!!

Hello,
I have been reading this site for quite a while and I finally decided to join! I am a 21 year old in my final year of uni and I have 20K in a 'high' interest bank account.
I want to take the first step and start investing - I am thinking of putting either 5 or 10K in bluechip shares via commsec (buying share packs) and putting the rest in either a term deposit or balanced CFS managed fund.
Does anyone know much about commsec share packs? I am a total newbie so I am pretty nervous ..I want to invest so I can buy an investment property in 2-3 years time.
Any criticisms/suggestions would be appreciated
Mark

For a short term of two to three years I would pick the following:

1 an internet bank account
2 a cash management account
3 a term deposit
4 a fixed interest/bond fund
5 RBA bonds

With these you are unlikely to make a loss, before you purchase your property.




Johny.

Thank you for your input John.
I feel most comfortable with term deposits since they give guranteed interest. The only down side I can see with a term deposit is that I can not continually add to it.
I am not in favour of an internet bank account because they seem to pay low interest (my currently netsaver bank account is only paying about 3.5-4%pa).
What would be the advantage of a fixed interest fund over a term deposit? ..The fixed interest funds I have reasearched tend to pay about 4.5% ..so wouldn't a term deposit be better?
Also, I don't really know what RBA bonds are and the dividends that they pay

EDIT:
Another question that just came to mind; I will be graduating uni at the end of this year with a 40K HECS debt. Should I pay this off with the money I currently have ..or invest as normal and slowly let the HECS debt be paid out of my wages?

RBA bonds are loans to the Australian Government. They pay a coupon over a term and at the end you get your money back. Safe as the Government.

HECS Debt.
I still have 11000 to pay. Thats from the 90's. You can:

1) pay it early. No pressure of debt, feeling of responsability, do the right thing, start from scratch. or,

2) pay later. build wealth, create a portfolio, get some assets, take on a bit of risk.


Its your choice.





Johny.

The difference between a fixed interest fund and a term deposit is, you can withdraw cash from the fixed interest fund at any time (1-3 days).


I am an indexer, so I hold the ASX200. I have a strong stomach ATM.

You are very lucky to have 20k. Need a bit more for a deposit in 2013.
What are you studying if you don't mind me asking?



Johny.

Thank you for all of your advice John. I will definately do some research on a fixed interest fund and then decide between that and a term deposit.

I am studying veterinary science ..hence the relatively high HECS debt.