A Margin Loan allows you to borrow to invest in shares, managed funds, cash deposits, master trusts and assets within wrap accounts. You can also use the borrowed funds for other investment or business purposes.
Using your own funds in combination with our providers' Margin Loan enables you to increase your investment opportunities more than if you were solely using your own assets. As with any leveraged investment, the objective is that your portfolio will grow in value over time.
The benefits of leveraging include the potential for increased returns, the ability to diversify your portfolio along with potential tax benefits. The most important factor is to select the right securities and investment structure for your own personal situation. Accordingly, it is critical to talk to your financial adviser before leveraging into the stock market.
It is important to note that increased gearing increases risk and has the potential to magnify losses.