A: Thanks for the question.

I think “a decent return” is a bit in the eye of the beholder.

If you were bearish on the stock market and thought the market might drop 15%, then a return of 2.5% to 3.0% from term deposits might look pretty decent…

Working on the assumption that protection of capital is pretty important, here are some suggestions:

a) term deposits. Have a look at the second or third tier banks for a higher rate – remember that the government guarantee applies up to $250,000 per institution;

b) you can purchase bonds directly. Brokers like FIG Securities can help;

c) you can purchase government bonds directly – they trade on the ASX (see here).

d) have a look at some bond funds. Consider duration (average maturity of the bond), credit risk and management fees.. Consider funds like the AMP Corporate Bond Fund – (see here).

e) hybrid securities; and

f) potentially, some lower risk property assets – perhaps a well-diversified property trust…