FURTHER INFORMATION
GETTING STARTED
Making the decision to invest can be a difficult one for the new investor. Any decision to invest must be based on your own investment objectives and personal circumstances. You should note, however, that according to the most recent ASX Share Ownership Study (for 2004, published in February 2005), around 55% of Australia's adult population hold shares either directly or indirectly through a managed fund or self-managed superannuation fund.
The decision to invest should be based on looking at the following factors:
- a determination of what your goals are - short, medium and long term;
- determining your risk profile - your tolerance to the prospect that you may not receive the return you expect (either in the amount received or within the timeframe) and/or that you may lose some or all of your capital;
- how much money should you invest - taking into account your goals, risk you are prepared to take (see Risk Disclosure ) and finances;
- how you want to invest - directly (in your own name) or indirectly (such as through a managed fund), locally or internationally, and in what asset classes (such as shares, property, fixed interest or cash); and
- the tax implications of your decision to invest - including issues such as dividend imputation, capital gains tax, and GST (which is chargeable on brokerage costs).
ASX have produced a brochure entitled Getting Started in Shares(see the link in the right column). This provides some key information relating to investment in shares.