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Australian Direct Share Investments

Our investment philosophies are centred around investing directly (rather than via managed funds) and Australian share investing is one of our core services. We determine all investment recommendations and we handle all buys and sells. No part of the process is outsourced to an external stockbroker.

Investing in the share market directly provides a number of benefits, namely:

1) Choice
The entire market is at your disposal (around 2,500 companies). There is no requirement to limit investment opportunities to a particular index or benchmark.

2) Control
You decide when to buy, how much to pay and what amount to invest. You are also in control of when to sell. This means you can tailor outcomes to meet your profit and tax objectives.

3) Liquidity
In most cases, there are always buyers and sellers waiting. Buys can therefore be made at a moment’s notice, as can sells. The liquid nature of the market gives rise to a number of strategies to protect capital and maximise profit, such as fine-tuning entry and exit points and implementing stop losses.

4) Capital protection
Whilst price fluctuations can be extreme on the Australian market, various capital protection strategies can be implemented. Investing in small allocations, reducing positions when unrealised profits are high, ensuring sufficient diversification exists and carrying out due diligence before investing all minimise the risk of loss.

5) International exposure
It is true the Australian market only represents about 2.5% of share markets globally, but exposure to overseas investments can still be achieved via Exchange Traded Funds (ETFs) and Listed Investment Companies (LICs). Additionally, a lot of Australian companies operate globally, thus exposure to overseas markets can be obtained this way too.

6) Property exposure
Diversification into property can be achieved through investment in Australian Real Estate Investment Trusts (AREITs).

7) No ongoing management fees
Brokerage applies when shares are bought and sold – that’s it.

8) Full benefit of franking credits
All franking credits received on dividends can be used to reduce the amount of income tax you pay. This may not be the case where shares are held via a managed fund because the fund manager will seldom pass all available credits back to investors.

9) More strategy profit potential, less risk
Compared to other forms of investing, direct investment in the Australian share market provides an unmatched combination of strategic opportunities to not only maximise profit, but minimise risk too.

For more information about how direct share investing compares to investing in managed funds click here.

If you would like to know more about investing in the Australian share market, contact Financial Planning Expert or phone (03) 5974 4350.

This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial and tax advice prior to acting on this information.Opinions constitute our judgement at the time of issue and are subject to change. Financial Planning Expert Pty Ltd does not give any warranty of accuracy, nor accept any responsibility for errors or omissions in this document.
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ABN: 71 545 756 841 Australian Financial Services License: 402042

Phone: (03) 5974 4350

Email: info@financialplanningexpert.com.au

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  • About Financial Planning Expert

    Financial Planning Expert is an independent financial planning business based in Melbourne. We provide genuinely independent and conflict free financial advice. We’re experts in self-managed superannuation fund (SMSFs) advice and strategy, retirement planning, property and share investment advice, life and income protection insurance, tax planning, asset protection, estate planning and advice for Australian expatriates.