‘Shares’ – it’s a word that’s thrown around an awful lot. But what does it actually mean?
When you buy shares, you become a part-owner of a business (yes, really!). As a part-owner, you can then receive a proportion of the profits from the business you have invested in – in the form of dividends. You’ll also benefit from any growth in the share price, too.
How it’s done
The share market is where shares live and breathe. It’s an environment where people can buy and sell shares, and where companies can raise capital by issuing shares to investors.
If and when you’re ready to make an investment, you can invest in shares directly, or through a managed investment or separately managed account. So, what’s the difference?
With a managed investment or separately managed account, your Investment Manager willresearch the shares you’re interested in, and buy and sell on your behalf (as well as for all the other investors in that fund).
On the other hand, if you choose to buy and sell the shares yourself, you have total control over your money and what you buy and sell. But as with most things in life, there is a catch. Taking this route means you’ll need to research and manage those shares yourself (unless this is done for you by your financial adviser – which can be a much safer option).
Reaping the benefits
The benefits of shares are plentiful. They can offer you a tax-effective long term investment – providing both regular income and capital growth. But it’s important to remember, share investment can carry significant risk. That’s why we recommend you enlist the help of an experienced Financial Planner. After all, it’s a big decision for you, your assets and family.
MyState is here to help
Why trust our team? Well, our Wealth Management’s Financial Planners have access to expert share analysis and research, along with a range of investment and superannuation platforms. This can make share investing relatively stress-free.
We’ll help you navigate a range of options before you choose what’s best for you. This might include investing in shares directly, or through Managed Funds or Exchanged Traded Funds – these options can help you gain even more benefits from diversification and investment opportunities not readily available to retail investors.
Tips to remember
It’s important to remember, shares are a long-term investment, and can be rocky when used in the short term. But with the help of a professional, they can bring you the financial security you’re dreaming of.
When you choose to invest with the help of a MyState Wealth Management Financial Planner, our team will be on call to help you grow your portfolio, benefit from extras like tax advantaged income through Franking Credits or capital growth, understand inflation and performance reporting – and of course help you ride through changes in stock price.
When it comes to shares, we want you to succeed as much as you do. And together, we will.