The benefits of direct share ownership are many and varied. Incorporating directly owned ASX listed securities can assist in ‘designing’ an investment portfolio structured for specific purposes, such as –
- the generation of income streams that carry ‘fully franked’ dividends (i.e. tax credits attached);
- minimising income and maximising growth; or
- weighted towards specific sector categories such as resources, medical, financial services, transport, industrial, etc.
Moreover, direct ownership of investments allows for better management of capital gains tax liabilities. Unlike (most) actively managed funds where the tax circumstances of individual investors are not considered by the manager, ‘dealing’ with individually held share investments can be affected at the time of the clients and Advisors choosing – helping to mitigate capital gains tax liabilities.
We might use combinations of ‘sector specific’ managed funds, directly owned shares and property securities, fixed interest deposits, hedge funds and other ‘alternate’ investments, etc, in order to develop the most cost effective portfolio that is appropriately diversified and in accordance with your Risk Profile.