Direct shares

Investing in direct shares describes when you buy shares on the Australia Securities Exchange as an individual. But is this investment strategy right for you?

Pro’s:

• Greater control over investments – You can choose specific investments that you can tailor towards your needs and objectives. There are also no layers between the investment and owner which provides greater transparency as the investor knows exactly how they are invested and how much is invested in each company.

Con’s:

• Diversification is generally less than what managed funds can offer. This can increase your security risk.

• There are brokerage costs for each transaction made (ie buy or sell).

Suitable for:

• Those that have the time and the interest and with enough knowledge and confidence.