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Investing in shares

The key to successful share investment is diversification and taking a long-term view

Learn more about how a quality sharemarket investment can lead to both capital growth and income over time.

Topics covered include
Investing in shares for capital growth  Capital growth can protect against inflation Investing in shares for income Share income can be tax-effective
Shares can be volatile -don't panic The key to successful investing is time, not timing The benefits of dollar cost averaging Diversification can smooth the ride
Diversificaion is important for income Reweighting to reduce volatility and improve performance Understanding risk Which type of share ownership is right for me
Monitoring the performance Investing with Perpetual in Australian shares

What are shares?

A share is part ownership in a company. Shares can be for a private or public company. Publicly listed companies are more liquid (ie there are people looking to buy your investment should you wish to sell) as they trade on an exchange. This allows you to invest in many companies, in  any industries. You can buy shares directly on the sharemarket or via a managed fund. A quality sharemarket investment can lead to both capital growth and income over time. 

You can invest in household brands

Next time you walk in your front door, take a look at the brand names around your home. Do you have a lounge from Harvey Norman or a Telstra phone line? Are there groceries from Woolworths in your kitchen? These are all the products of companies that are listed on the Australian Securities Exchange (ASX). You could share in the future profitability of these and other companies by investing in shares.

Common brands around the home
Household brands and australian shares

The sharemarket

The sharemarket is a market in which buyers and sellers come together to buy and sell shares. In Australia, the leading market for shares is the Australian Securities Exchange. It is made up of close to 2,000 companies. It is the eighth largest sharemarket in the world, and the second largest in the Asia-Pacific region behind Japan (as per MSCI World weightings, 31 December 2010).