Equities, also known as shares, are likely to form a large proportion of your portfolio. Over the longer term (five to seven years) we believe investing in Australian equities may generally provide you with higher returns than other asset classes such as cash or fixed income.
While Australian equities can provide the potential for strong capital growth, did you know the dividends you receive from them can also help smooth your portfolio returns? This is true even when markets are volatile.
Australian equities continue to offer attractive income opportunities and can give you access to a broad range of industry sectors that can help diversify your portfolio.
They can also offer other advantages, such as tax advantages through franking credits which can help reduce your overall taxable income and discounts on any capital gains if they are held for more than 12 months. This is however dependent on each individual’s circumstances.
Flexibility to target capital growth, income or a combination
Potential tax advantages including franking credits