Why invest in shares?

Shares are a good investment vehicle because they are readily accessible through a broker (or managed fund), aren’t subject to ongoing fees (just brokerage costs per transaction) and are liquid. There are tax concessions by the way of franked dividends, and dividends can be re-invested in the shares at no additional cost. Shares can be used as security for borrowing and a portfolio can be altered at any time to adjust for economic or industry trends. These characteristics make shares as an investment vehicle appealing to many. So what are shares?

Shares are part ownership in a company. Shareholders share in the companies profits, which may be given to shareholders in the form of dividends.

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Shares are also often referred to as equities.

Shareholders also benefit from capital growth when the value of the company share price increases.

Shares can be both a “growth” and “income” producing asset.

Companies can list on the stock exchange to create a market for investors to trade in their shares.

Shares have historically proven to provide the potential for the highest return of all the asset classes.

Who should invest in shares?

Barefoot investor

A new starter in the market and wanting a better return on savings than the banks are offering in the current low interest rate environment. Might be a parent investing in parcels of shares for their child or themselves, a uni student wanting to start a small portfolio, any other person with savings whom want a better return than current savings accounts or fixed term deposits.

Time-poor investor with an idle portfolio

Someone that has an existing share portfolio that they acquired through a discount broker but are now too time poor to conduct their own research and make necessary adjustments to their portfolio. They now need a professional adviser to ensure they are maximising their returns from their portfolio.

Planning for retirement

Has an existing portfolio but needs some assistance from an experienced financial adviser to ensure the portfolio is well positioned into retirement in terms of stock allocation. May want to take greater control of their investments by establishing a SMSF.

Retiree

Has an established portfolio, maybe a SMSF, and requires the expertise of our experienced advisers to ensure the portfolio consists of a diversified mix of strong companies paying good dividends. May require our specialist advice in terms of protecting the value of the portfolio.

Trader

An investor that understands markets and uses share trading to maximise returns in the short term. Requires the advice of our expert traders to talk strategies and prices.

Buying shares | How we can help

One-off purchase

Do you simply want a no-fuss, fast and efficient means of buying a parcel of shares. We can typically have an account opened and the shares purchased within a day or two. Practice makes perfect and our experienced team of professionals offer a streamlined, no-fuss service.
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Tailored portfolio construction

Let us assist you on your individual share selection, or advise you in constructing a tailored portfolio to meet your investment objectives. Whether you are new to the market or have been investing for years, the team of experienced professionals at iInvest are here to help.
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Portfolio review

Do you have a portfolio sitting abandoned and unattended, and quite possibly not working as effectively for you as it possibly could. It might be time to have a set of professional eyes review your holdings and assess whether you have the correct share selection in place to maximise returns from your holdings. Perhaps you’re now too busy to undertake the research and analysis necessary to maintain your own portfolio. Let our team of professionals take the worry out of it for you. A portfolio of any size needs upkeep, and the team at iInvest would be more than happy to help you with this.
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Selling shares | How we can help

One-off trades

Are you looking for a fast and efficient means of selling a parcel of shares without the fuss of establishing a full stockbroking account? We can have an account set up and shares sold usually within the day, with the funds in your account typically within 2 days.
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Investing in Blue Chip Shares

Are you looking to invest in Blue chip shares include the shares of those companies that are dominant in their respective industries, have a strong capital base and brand, and might be expected to grow modestly for some time.
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At iInvest we can help you invest in blue chip shares. We specialise in the Top 200 ASX listed stocks so can advise you on companies that have a long history of consistent earnings growth and dividend payments. If you’re an investor chasing income and like the financial stability and longevity of the blue chips, let us analyse company yields and growth forecasts for you.
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Common investments we can help with

I want to buy US shares

At iInvest we can buy and sell US shares for you in major US shares. Companies like Apple, Google, Disney and Microsoft are traded on international exchanges which we have access to.

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To buy or sell: I want to know what to look for

There is always an element of risk when investing in equities, however our analysis of key fundamental company indicators, together with key technical indicators, is valuable in identifying when to buy and when to sell. You can also never underestimate experience in determining when to buy and when to sell; our senior investment advisers been reading and analysing markets for over 25 years.

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I want to buy shares in a specific company like ANZ, NAB, BHP

We can help you do just that with everything from our seamless one-off trade service, to helping you develop a tailored portfolio specific to your particular financial situation and needs.

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How can shares build your wealth?

Shares are a popular investment for the following reasons:

Income producing

As a shareholder you’re entitled to a share of the company’s earnings in the form of dividends. While not all companies pay out dividends, the well-established, financially secure blue chips have a history of strong dividend payments.

Capital Growth

An increase in a company’s share price means that you make money by buying your shares for one price and selling them for a higher price. When a company grows and expands, profits increase, the value of the company increases and so does the stock and thus share price.

Tax Concessions

Benefit from the tax credits you receive with your dividend payments. Capital gains tax concessions are also applicable if selling at a profit after holding the shares for a year.

Why should you invest in shares?

Understanding the benefits & risks

Benefits of investing in shares:

  • Potential to outperform returns from other asset classes
  • Dividends and potential capital growth
  • Taxation benefits – e.g. Franking Credits
  • Diversification
  • Flexibility
  • Liquidity – the ability to buy and sell shares quickly and easily
  • Ease of transactions
  • Ability to start investing from as little as $500* (not including brokerage)
  • Relatively low transaction costs
  • Shareholder voting rights
  • Shareholder benefits* (some companies offer discounts for shareholders)

Risks involved with investing in shares:

  • The share price may fall from what you originally paid for the shares
  • If a company goes broke, ordinary shareholders are the last in line to get their money back
  • The value of shares will fluctuate over time, and dividend payments are dependant on company profits
  • Past performance of a company, is no guarantee of future performance and earnings
  • Risks associated with the Australian and Global Economies e.g. currency volatility, recessions, natural disasters, wars, political instability

What do we look for in a company?

Solid yields for income

Strong board and management

Strong cash flow

Strong balance sheet

Strong growth story for capital appreciation

Strong industry position (pricing power)

Quality earnings (comfort with forecasts)

What we do | How to buy & sell shares with iInvest

Advise you on individual share selection

Construct a tailored portfolio

Whether you are just starting out with your first investment or have been trading for years, the iInvest team will be able to assist you. With iInvest you can trade any of the ASX listed shares plus many international markets around the world at competitive prices.

As a client of iInvest you will be able to receive via email a copy of our daily research as well as recommendations, economic updates and our quarterly newsletter. We also send trading alerts to our client’s by SMS / Text Messages to ensure you receive our recommendations straight away no matter where you are.

Want to discuss building your share portfolio?

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What can we help with?

  • Buying shares | We can help with one-off share purchases or help construct a portfolio that aligns with your financial goals
  • Selling shares | Whether a one-off sale or multiple transactions, iInvest Securities can help
  • Access to international markets | Want to purchase shares traded on international markets? Get in touch, we can get you access to international markets
  • Bank & blue-chip stocks | We can help you purchase shares in the big four banks: ANZ, CBA, NAB, WBC and a number of highly valued and stable investments
  • When to buy or sell? | At iInvest Securities, research and analysis is one of the things we do best. Contact us for up-to-date market forecasts and analysis

Yields: Savings account Vs Blue chip portfolio

With bank interest rates at All-Time Lows – It’s time to look for a better yield elsewhere. Below is a table of projected yields for some of the biggest stocks in our market. The yields on these stocks are currently greater than most at call bank accounts and term deposits are offering. Investing in these high yielding shares can make your money work harder for you:

Average return on ‘Bonus Savings Account’*

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*As per Canstar

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2013 Gross dividend yield

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2014 Gross dividend yield

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2015 Gross dividend yield

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2013 Gross dividend yield

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2014 Gross dividend yield

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2015 Gross dividend yield

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2013 Gross dividend yield

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2014 Gross dividend yield

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2015 Gross dividend yield

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2013 Gross dividend yield

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2014 Gross dividend yield

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2015 Gross dividend yield

Building a share portfolio with iInvest

iInvest is able to advise you on individual share selection or can help construct a tailored portfolio to meet your investment objectives via our experienced local team. Whether you are just starting out with your first investment or have been trading for years, the iInvest team will be able to assist you.

With iInvest you can trade any of the ASX listed shares plus many international markets around the world at competitive prices. As a client of iInvest you will be able to receive via email a copy of our daily research as well as recommendations, economic updates and our quarterly newsletter.

We also send trading alerts to our client’s by SMS/text messages to ensure you receive our recommendations straight away no matter where you are.

Want to discuss your options?

Get in touch