Why invest in Aussie stocks?
Why invest in Aussie stocks?
The ASX has listed a number of benefits of investing in aussie stocks, which are pretty compelling reasons, in our humble opinion.
Let’s have a look at them below.
The Aussie market rules: Although past performance is no indication of future performance (the oft-quoted lament of many stock publications), history suggests that the Australian share market has outperformed other types of investments over the long term.
Tax benefits: When you are invested in a company, the tax paid by the company on its profits filters back to you, via franking credits. Investors can use these credits to offset tax payable on other income. Also, shares held for over a year qualify for a 50% discount on capital gains tax paid.
Diversification: The Aussie stock market is an excellent example of a share market designed to capture a wide range of companies, allowing investors to put their eggs in a number of baskets (one of the smartest maxims of the market). The ASX lists around 2,000, including sectors such as financial services, industrials and healthcare. Investors have the option of spreading their holdings over a wide range of companies, which reduces risk.
Flexibility: Our market boasts a fine degree of liquidity that is, it’s possible to buy and sell shares swiftly. When an investor sells shares, the money is accessible within three days. Other investments typically take longer to sell.
Financial control: Does trading shares and financial control sound like an oxymoron? It isn’t. Share trading allows the investor to decide how money is invested, and how the investor controls his or her finances. For those who wish to put control of their finances in more able hands, there are brokers, and the Australian Stock Report, to help!
It’s cheaper than ever: Trading shares has become cheaper in recent years, partly owing to new technology which provides more efficient services.
Transaction-only service fees for buying and selling shares can cost as little as $15.
Alternatives:
And, of course, the Aussie stocks trading game is a special one, in that if you don’t want to trade shares, you have another alternative CFDs.
CFDs involve little capital, and allow investors to go long or short on a position; they also have no expiry dates or contract sizes.
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