what do you know about Margin loan?
A margin loan is a type of investment loan that lets you borrow money to invest in shares, managed funds and other approved financial products.
Do you think extension of margin loan facility will improve the share market ?
Yes, I do extension of margin loan facility will improve the share market, because by Using a margin loan to amplify our investing power can be an effective way to build wealth, diversify our portfolio, boost our investing power and could offer tax benefits as well.
Ø How does a margin loan work?
A margin loan uses existing shares, managed funds and cash as security.
Interest on a margin loan is calculated daily; but how it is paid will depend on the loan. Some margin loans allow interest to be paid in advance.
Ø What are some of the benefits?
Boost your investing power - increasing the size of your investments could amplify your profits in a rising market as well as increase the size of any dividend payments
Diversify your portfolio - access to more funds means you could diversify across different asset classes, industries and companies. This in turn could also help reduce investment risk.
Potential tax advantages - depending on your circumstances you may be able to claim tax deductions for some or all of your borrowing costs
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