A Squared Financial Solutions Adviser may recommend managed funds as a part of your investment portfolio. They have access to comprehensive and independent research that helps them decide which managed funds are right for you and your investment portfolio.
What is a managed fund?
A managed fund brings together the assets of many investors into a single investment.
The investment is managed by a fund manager who manages the funds according to an investment objective, philosophy or strategy. There are over 100 fund management firms in Australia and many of them offer several kinds of managed fund products.
Investors hold ‘units’ in a managed fund. The price or value of those units moves up and down like a share price does.
Managed funds can include a variety of assets like property, shares, international shares and cash. They can also be geographically focused, such as Asia or Australia, or focused on a single asset class or specific industry sector.
A Squared Financial Solutions Adviser may recommend shares as a part of your investment portfolio. They have access to comprehensive and independent research that helps them decide which shares or managed share funds are right for you and your investment portfolio.
What are shares?
A share represents an ownership in part of a company. This means you have an interest in the financial performance of the company. As a shareholder you have the right to benefit from profits which are paid to you through share dividends. You can also benefit from an increasing share price.
Shares may also deliver some taxation advantages compared to other investment assets. According to the Australian Stock Exchange: “For Australian investors, dividends are often worth more than the cash payment they receive. This is because where companies have already paid tax on their profits, tax credits known as franking credits may be attached to the dividends the company pays to you. These franking credits can be used to offset tax payable by you on other income. In addition, shares held for more than 12 months qualify for a 50% discount on any capital gains tax payable.”
Shares are also known as stocks, listed securities or equities. Within Australia, most companies that offer shares to the public are publicly listed on the ASX (Australian Securities Exchange) or the Chi X. The ASX and the Chi X are more commonly known as share markets.
Shares can be held in a number of ways, for example, in a superannuation account or an Investor Directed Portfolio Services (IDPS) account. They can also be held directly.
Your Squared Financial Solutions Adviser has access to research that helps them consider which shares, managed share funds, or share products might be right for you and your portfolio after they consider your needs and objectives.
What kind of goals can shares be used for?
Shares are usually considered an important asset class when capital growth is the desired outcome for a medium or long term savings and/or investment goal.
Talk to us about how shares might work for you.