Share investment advantages

Historically, the Australian share market is the best performing asset class for investors. An investment of $100,000 in 1984 would be worth $721,837 in 2006*, not including additional income such as dividends and franking credits.
* As at 4 May 2006

Share portfolios can be designed to provide maximum after-tax income. Franking credits may be attached to the dividends paid by a company. These franking credits may be used to offset tax payable by the investor on other income. Additionally, if shares are held by individuals for more than 12 months, a 50% discount on any capital gains tax payable may be claimed.

The broad range of investment options in the Australian share market allows the investment manager to build a diversified portfolio of shares covering a broad range of industries and businesses, so the investor is not overexposed to one sector or asset class, such as property.

With the increasing prevalence of margin lending facilities, it is now inexpensive and easy for investors wishing to borrow money to increase their exposure to the share market in a tax effective environment.

The Australian share market has a market capitalisation of over $1.1 trillion, providing a highly liquid environment to buy and sell listed equities. Shares can generally be bought and sold immediately with the sale proceeds normally available within three business days.