Introduction

There are many reasons to invest in shares. Some of us treat it as a bit of a punt, in it for the thrill of pitting our share selection skills against other players in the market. Others look to the market as a generator of long-term wealth. Whatever the motive, with thousands of shares listed on the stock exchange, how can an investor choose which ones to buy? Let’s look at a few key considerations.

Introduction

Whether it’s by direct purchase, via a managed fund or through superannuation, most Australians hold some form of share investment. Many of us are aware that if the numbers in the finance report on the evening news are mostly green that’s good and if they’re red that’s bad, but beyond that we give little thought to what shares are and why we should take an interest in them.

Introduction

The real power of investment comes from compounding returns - the process of putting your investment income straight back to work so it can earn more income. To help their investors reap the rewards of compounding, many companies offer dividend reinvestment plans (DRPs).

The potential benefits of a DRP...

Introduction

During a share market correction or downturn the media will report that a certain market has ‘lost’ billions of dollars. But what happens to all that money and where does it go? Is it really lost?

Introduction

It’s obvious that investors select investments based on the rate of return they can earn on their funds.

Keep in mind that your rate of return should be based on the dollars you keep after taxes have been paid. One way to reduce the tax you pay on dividends is by using franking credits.