Margin lending

Allowing you to buy shares and units in managed funds, where your portfolio is the only security required for the loan

 

In detail

You can leverage an existing portfolio or create a new investment portfolio to help meet your wealth creation goals. It is important to keep in mind that when your potential gains are increased so too are your potential losses. You should consider the appropriateness of gearing as an investment strategy with your adviser and make sure you fully understand the potential risks involved.

A margin loan provides you with a flexible line of credit of up to 75 per cent of the value of any approved securities that you wish to purchase. You can contribute your own capital as the balance or use an existing portfolio as security for your loan.

Things to consider

Your assets and cashflow

Do you have equity to secure a loan and an income source to service loan repayments?

Your investment strategy

Are you looking for long-term capital growth on your investments or a short-term income stream? Are you looking to invest in the stock market or property market?

Your risk profile

What levels of debt are you comfortable with?