Some of the advantages of investing directly include:
- knowing exactly what asset you are buying
- having complete control over when you buy and sell the investment
- fees may be cheaper than for other methods
- enjoying the experience of investing in the share market or property market directly
- having transparency on what investments you hold.
Some of the disadvantages of investing directly can include:
- the level of knowledge and management needed can be considerable
- time needed to research and evaluate investments
- the difficulty in creating a diversified portfolio with a limited amount of money, if this is what is desired
- incurring higher fees for some types of investments
- the possibility that some assets may be too expensive to purchase by yourself (e.g. a shopping centre)
- lack of liquidity with some, in particular large, investments.