Why invest in shares?
You can benefit from investing in shares from:
- capital growth (through increases in the share price).
The average return yielded by shares is normally higher than cash investments and fixed income assets and some shares may also offer tax benefits in the form of franking credits. The share market, however, is volatile and may be influenced by various factors such as company financials, the economic environment and government policies. That's why, when investing in shares, it's important to seek professional advice.
Everyone's tolerance for risk is different. Diversification is one of the common strategies to manage investment risk. For more information on managing risk through diversification refer to our section on investing.