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Benefits of Equity Investment

 

Equity or shares investment refers to the buying, holding or selling shares in companies on the stock market. The aim is to maximise income from dividends and generate capital gains.

 

Prudent investment in shares has many benefits, the main benefit being a 12% long term average return on investment. This long term average outperforms direct property ownership and cash deposit offerings.

 

Around 6.7 million or 41% of adult Australians are company shareholders. Most were introduced by large scale new ASX listings such as Telstra and Commonwealth Bank.

 

Share ownership is attractive because

  • On average higher long-term returns

  • Tailor investments for combinations of capital growth or income

  • Investment in stocks with fully franked dividends has strong tax advantages

  • High level of liquidity compared to investments such as real estate

  • ASX investments are highly transparent with high levels of corporate governance

While stock prices fluctuate, the fundamental value of companies typically rises over time with growing markets, growing affluence and new innovations.

 

Having an experienced financial adviser will substantially help you identify the best prospective investments.  PhillipCapital provides you a full range of stockbroking services including pre-IPO funding, Initial Public Offerings and placements. For more experienced investors we can help to further diversify investments with derivatives such as options and warrants.

 

 

 

Find out more

Call  1800 214 264  to speak to an adviser or complete your details here and we will contact you.

 

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