Australian Market Share for Accounting and Finance - myassignmenthelp

Question: Should investors invest directly in the Australian Share Market? Answer: Direct investment in the Australian Share Market is by far the best option. Technically, regardless of the investment, it is paramount that an investor achieves a return that can be considered greater than inflation. Subsequently, this is after accounting for taxation and cost to maintain a profitable investment. An example, in this case, is that if inflation is running at 2 percent, investors in the 30 per cent bracket should have a return of 2.86 per cent to ensure that the scope is even (Barro Ursa 2017). Technically, this is where the concept of direct investment comes in, investing directly in the top ten stocks in the Australian Market Share is advantageous in that the shares surpass the average managed fund return by a strong margin. In relation, this is credited to the fact that Australian share market returns around 12 per cent per annum over a ten year period. When compared to an average managed fund, this is around 60 per cent better (Lobe Walkshusl 2016). Also, many investors have put into consideration whether the managed fund industry is indeed enhancing their investments over and above what they can achieve by themselves (Gitman, Joehnk, Smart Juchau 2015). The answer is, many of them have watched their funds fall between 30 and 70 per cent. In relation, more of this investors are shifting their focus hence many of them are taking a first-hand role in their wealth creation strategies through investing directly (Dixon 2015). From a third-party perspective, the choices and benefits of investing directly available to investors by far outweigh lower returns by indirect investment in the form of managed funds. References Barro, R.J. and Ursa, J.F., 2017. Stock-market crashes and depressions.Research in Economics. Cummings, J.R., 2016. Effect of fund size on the performance of Australian superannuation funds.Accounting Finance,56(3), pp.695-725. Dixon, D., 2015. Share market biased against small investors.Equity,29(10), p.9. Gitman, L.J., Joehnk, M.D., Smart, S. and Juchau, R.H., 2015.Fundamentals of investing. Pearson Higher Education AU. Lobe, S. and Walkshusl, C., 2016. Vice versus virtue investing around the world.Review of Managerial Science,10(2), pp.303-344.