Funds Focus

A protected loan with no interest payments – Strategies for a rising market (cont.)
Self Funded Instalment Warrants have long been the preferred method of gearing for retirees and SMSFs and offer one of the lower risk ways to gear your portfolio.

Self Funded Instalment Warrants are a combination of a loan, your deposit and an insurance policy (put option) used to purchase shares.

The benefit to investors is that they only need to fund 50%-60% of the purchase price, the remaining 40%-50%

Strategies for a rising market

With many DIY investors focused on control and choosing their own investments, geared managed funds have typically been overlooked.

We consider how the current climate has also provided an opportunity to investors looking to gear their portfolio for a rising market and how these funds can offer a greater investment opportunity than margin lending.

Geared share funds
Often considered as an alternative to margin lending, geared share funds ease of

Strategies for a rising market (cont.)
One of the biggest changes in the investment lending landscape over the last 18 months has been the introduction of Investment Loans offering a “Walk-Away” feature.
As the name suggests, 100% Investment Loans provide investors with 100% gearing and are attractive to investors who want to gain leverage to the investment markets with no capital outlay. Investors need only fund the 7% – 9% pa which, in some cases, can be capitalised onto the loan. The