Investment methods

Investing direct

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.