Funds Focus

Many pundits are tipping double digit returns for Australian equities in 2011. We consider ways in which you can take advantage of a rising market through the use of leverage.
Gearing (borrowing to invest)
If you think the markets are going to bounce back this year, then borrowing to invest is almost certainly going to give you the best returns. There are now a number of different ways to do this, from margin lending, structured products, self funded instalment warrants and internally geared

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

Why do we sit on failing investments?
Two years ago (Psychology of Investment), I discussed the psychology of our investment decisions and why we have a psychological predisposition to buy when the markets are high and sell when markets are low.
At the time, I felt that my article had addressed the basics of structuring an investment portfolio to avoid the common pitfalls whilst highlighting the emotional attachment that we develop with our own investments and our propensity to avoid loss.