arg questions, page-2

Ideally ARG is the kind of stock you want to buy and never sell. The same applies to MLT, CHO, AUI, DUI etc.

Certainly with a few grand to invest, a LIC is a good option because it provides instant diversification at very low cost, with stable and reliable management and regular fully franked dividends, as well as the opportunity to invest off-market (usually at a small discount) through the share purchase plans.

That said, if you're looking to invest for only 1 year, the sharemarket might not be an appropriate place to do so, because the short-term fluctuations in share prices (even in LICs) can mean that you may lose a significant chunk of your capital. Investing over a longer period is certainly a safer bet when it comes to shares.

You may also wish to consider hybrid securities, which fit somewhere between equities and debt securities; these pay a 'dividend' which is effectively an interest payment on money you have loaned to a company; however, the price of these securities can fluctuate like share prices. I hold SEVPC which I still think is an attractive security despite what's going on with Seven at the moment, but others may be able to suggest other hybrids worth considering.