Sitemap Contact Us Login. Shares can be a sound long-term investment but of course there are always risks to be considered as with any type of investment. While daily fluctuations in price are to be expected, investors can often feel a degree of stress from short term volatility and bear market conditions. Unexpected events which are outside of your control, such as company specific bad news, a change in government policy or natural or man-made disaster can seriously affect share prices.

The good news is that there is a lot of good information available, including this site and other courses offered by the AIA and with time and commitment you can learn and manage your own portfolio. Whether you use a full service broker or do it yourself, making an investment in your chosen stock is as easy as a phone call or a click of a mouse. Some shares pay good dividends and these are often accompanied by franking or imputation credits.

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This income stream is passive and over time can become sufficient to supplement or even replace working income. You can take advantage of the imputation credits, there are lower tax rates on long term capital gains and you can have the benefit of legitimate tax planning by buying shares in the name of a lower income earner. Most shares are liquid assets. If you need cash for any reason, shares can be sold at short notice.

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When you take dividends into account, an investment in shares can provide you with an acceptable rate of return over the long term. There is so much information available to shareholders to help you monitor and manage your share investments so it is easy for shares to form a key component of an overall investment portfolio.

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Managing a share portfolio can provide you with a level of personal involvement that can be whatever you need or have time for. For retirees, it can provide an interest to replace paid work when the time comes.

AIA is a non-profit organisation devoted to educating investors PO Box OXENFORD QLD Phone Fax 07 ABN 75 Home About AIA Events Resources Education Advocacy Blog.

Types of Funds Self-Managed Superannuation Funds Estate Planning Wills Powers of Attorney Testamentary Trusts. Risks Volatility Share values can be volatile and can fall dramatically in price, even to zero.

Sleep at night factor While daily fluctuations in price are to be expected, investors can often feel a degree of stress from short term volatility and bear market conditions. Unexpected events Unexpected events which are outside of your control, such as company specific bad news, a change in government policy or natural or man-made disaster can seriously affect share prices. Lack of knowledge Your lack of knowledge as a new investor may be considered a risk initially.

Warning Investing without knowlege and understanding is just speculation and relies on luck. Benefits Ease of trading Whether you use a full service broker or do it yourself, making an investment in your chosen stock is as easy as a phone call or a click of a mouse. Capital growth The value of shares can grow over time.

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Passive income Some shares pay good dividends and these are often accompanied by franking or imputation credits. Taxation You can take advantage of the imputation credits, there are lower tax rates on long term capital gains and you can have the benefit of legitimate tax planning by buying shares in the name of a lower income earner.

Liquidity Most shares are liquid assets.

Rate of return When you take dividends into account, an investment in shares can provide you with an acceptable rate of return over the long term. Information There is so much information available to shareholders to help you monitor and manage your share investments so it is easy for shares to form a key component of an overall investment portfolio.

Personal involvement Managing a share portfolio can provide you with a level of personal involvement that can be whatever you need or have time for. Resources Equities Managed Funds Property Fixed Interest. Brisbane website design Jellygnite. Share values can be volatile and can fall dramatically in price, even to zero.