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Investing in LICs and LITs

Listed investment companies and trusts are commonly referred to as Listed Investment Vehicles (or LIVs). Learn more about the features, risk and benefits of investing in LIVs. 

  1. Investors
  2. Investment options

 

What are LIVs?

Listed Investment Vehicles (LIVs) are professionally managed investment vehicles. 

When you buy a share in a LIV it gives you exposure to the diversity of investments held in the LIV’s portfolio. The investments held by the LIV may be Australian or international shares, property securities, or fixed income. There are a wide range of asset classes and investment strategies available though LIVs.

Listed on ASX, you buy and sell shares in LIVs through your broker.

Like any investment, LIVs have risks you need to understand. You should seek independent advice from a professional adviser before investing.

 

Types of LIVs

There are two different types of LIV structures - companies and trusts. There are some important differences between the comany and trust structures, particularly from a tax perspective which are important to understand before investing.

Listed Investment Companies (LICs) are incorporated as public companies. As companies:

  • Any profit derived from the investing activities of the LIC is taxed at the company rate before dividends are paid.
  • The directors choose the level of dividend. To pay investors a predictable income, they may pay out more than the underlying income levels through a return of capital or retain surplus from the company’s after tax profit.
  • They have the ability to pay franked dividends. 

INTRODUCTION TO LISTED INVESTMENT VEHICLES

Beginners Guide:

An overview of Listed Investment Vehicles (LIVs), including what they are, why investors choose them, what the risks are and how to trade them.

Learn More

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Artwork by: Lee Anne Hall, My Country, My People

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