Livewire has acquired Market Index, the country’s leader in free stock market data.
Find out why.

Precipice looms if franking rules change

Intelligent Investor

Independent Financial Research

Precipice looms if franking rules change. Is your portfolio too reliant on franking? Diversification - spreading your investments across a variety of assets - means you're not overly exposed to the vagaries of luck. In particular it helps avoid cliff risk - the chance your investments might fall over one. A company's share price can collapse when affected by a change in law. Law changes can have a large impact on entire classes of shares, or the sharemarket generally. For instance, consider the current financial inquiry and the push by some to do away with dividend imputation, better known as franking. If you've got a diversified portfolio you don't have too much to fear from franking credit changes or one-off risks generally. But if you're loaded up on financials, hybrids and Telstra, you might be at more risk than you expect of your portfolio value dropping off a cliff. (VIEW LINK)


Intelligent Investor
Intelligent Investor
Independent Financial Research

Intelligent Investor is an independent financial research service with a 14-year history of beating the market. Our value investing approach empowers Australians to make more informed decisions to build their long-term wealth. We off structural...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.