Investment & Markets
From ASX shares to fixed interest, ETFs to managed funds — Merit helps you understand your options and build a portfolio that works for your goals.
Getting Started
Whether you're just starting out or want to refresh your knowledge, these fundamentals will help you make confident investment decisions.
Lowest risk, predictable returns. APRA guaranteed up to $250K per institution. Ideal for emergency funds and short-term goals.
Government bonds, corporate bonds, bond ETFs, and hybrid securities. Regular income with varying levels of risk.
Ownership in companies listed on the ASX. Returns come from dividends (with franking credits) and capital growth.
Diversification beyond Australia. Provides currency exposure — available hedged or unhedged.
Direct ownership, REITs, A-REITs, and property funds. Tangible asset with rental income and capital growth potential.
Infrastructure, private equity, commodities, and gold. Lower correlation to traditional markets.
The Australian Securities Exchange (ASX) is where shares, ETFs, bonds, and other securities are bought and sold.
Income & Stability
Fixed interest investments are the backbone of defensive portfolios. Understanding how they work is essential for every investor.
When you invest in fixed interest, you're essentially lending money to a government or company. In return, they pay you regular interest payments and return your capital at maturity.
Bond prices and interest rates move in opposite directions. Think of it like a seesaw:
This only matters if you sell before maturity. Hold to maturity and you get your face value back.
Bank deposits for a fixed term (1 month to 5 years). Your money is locked away in exchange for a guaranteed interest rate.
Issued by the Australian Government (AGBs) or state governments ("semis"). The lowest credit risk available.
Issued by companies to raise capital. Higher yield than government bonds, but with higher credit risk.
Diversified bond portfolios traded on the ASX like shares. Easy access to fixed interest without buying individual bonds.
Part debt, part equity. Issued primarily by major banks. Higher yield but more complex and riskier than traditional bonds.
Variable rate bonds where the coupon resets quarterly, typically based on BBSW (Bank Bill Swap Rate). Currently yielding approximately 7.5% with upside as rates rise.
Insurance company products providing guaranteed income for a fixed term or for life.
Pools of home loans packaged into tradeable securities with various risk tranches.
Data as at February 2025. Rates are indicative and subject to change.
Growth & Income
Australian shares offer a unique advantage: dividend imputation. Understanding how franking credits work can significantly boost your after-tax returns.
Australia's dividend imputation system (franking credits) is unique in the world and makes Australian shares incredibly tax-efficient.
When a company pays 25% corporate tax on its profits, shareholders get a credit for the tax already paid. This avoids double taxation.
Example: Fully Franked $0.70 Dividend
Tax impact by marginal rate:
Data as at February 2025. Yields are trailing 12 months and may change. Past performance is not indicative of future returns.
| Company | ASX Code | Sector | Dividend Yield | Franking |
|---|---|---|---|---|
| Commonwealth Bank | CBA | Banking | ~3.3% | 100% |
| Westpac | WBC | Banking | ~4.5% | 100% |
| NAB | NAB | Banking | ~4.2% | 100% |
| ANZ | ANZ | Banking | ~5.0% | 100% |
| BHP Group | BHP | Mining | ~5.2% | 100% |
| Rio Tinto | RIO | Mining | ~5.5% | 100% |
| Fortescue | FMG | Mining | ~8.0% | 100% |
| Wesfarmers | WES | Retail | ~3.2% | 100% |
| Woolworths | WOW | Retail | ~3.0% | 100% |
| Telstra | TLS | Telecom | ~4.2% | 100% |
| Woodside Energy | WDS | Energy | ~7.0% | 100% |
| Sonic Healthcare | SHL | Healthcare | ~3.5% | 100% |
| CSL Limited | CSL | Healthcare | ~1.0% | 100% |
| Cochlear | COH | Healthcare | ~1.3% | 100% |
| Transurban | TCL | Infrastructure | ~4.0% | 0% |
| AFIC | AFI | LIC | ~3.5% | 100% |
| Argo Investments | ARG | LIC | ~3.5% | 100% |
| Milton Corporation | MLT | LIC | ~3.8% | 100% |
| Whitefield | WHF | LIC | ~3.3% | 100% |
Most large ASX companies offer DRPs — instead of receiving cash dividends, you receive additional shares (sometimes at a small discount).
Even though you don't receive cash, DRP dividends are still assessable income. You need to declare the full grossed-up dividend in your tax return.
The cost base of your DRP shares is the market price on allocation date — keep good records!
Educational only — not personal recommendations.
Market Calendar
Twice a year, ASX companies open their books. Understanding reporting season helps you interpret results and avoid knee-jerk reactions.
In February and August each year, ASX-listed companies release their half-year and full-year financial results. This is when you learn how companies actually performed vs expectations.
Half-year results: February (for July–December period)
Full-year results: August (for January–June period)
Markets are forward-looking. If a company reports strong profits but below what analysts expected ("missed consensus"), the share price often falls.
Conversely, a company that "beats expectations" — even with modest results — often sees its share price rise.
"It's not about what happened — it's about what was already priced in."
Expert Execution
Merit partners with Morgans Financial Limited — one of Australia's largest full-service stockbroking firms — for investment execution and research.
Floating Rate Notes
Current approximate yield on floating rate fixed interest via Morgans new issuance. Zero brokerage. With rates forecast to rise, yields expected to increase further.
Yield as at Feb 2026. Subject to change. Past performance not indicative of future returns.
Interactive Tools
Run the numbers yourself with our suite of investment calculators.
Model the tax impact of franking credits on your dividend income.
Ask Your Adviser →Adviser access only
Project investment growth with regular contributions and compound returns.
See the power of compounding over time — Einstein's "8th wonder."
Find your Financial Independence number — how much do you really need?
Model before-tax contributions and see the tax savings.
How long will your money last in retirement? Model different scenarios.
Important: The information on this page is general information only and does not constitute personal financial advice. Past performance is not indicative of future performance.
Data sourced from ASX, RBA, and public sources as at February 2025. Yields and rates are indicative and subject to change.
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