Benefits & Risks

A margin loan can magnify your investment gains as well as magnify your investment losses. Below is a generic list of benefits and risks. For more information go to our product pages and Product Guides. It is important to be aware of both the benefits and risks before considering investing.

Benefits

• Increase the amount available to invest.
  
• Diversify an existing portfolio without selling.
  
• Manage your investment activities with the help of a flexible facility.
  
• Potential tax deductibility.

Risks

• Adverse changes in the value of your portfolio and interest rates.
  
• Events may occur that result in your loan becoming due for payment .
  
• Mismatch of cash flows and restrictions on the ability to deal in investments.
  
• Net proceeds may not cover the loan.
  
• Reliance on the Lender, Nominee and Sponsor, and any Authorised Person.
  
• Powers of the Lender, Nominee and Sponsor, and legislative changes.
  
• Margin and investment loans are more complex than a traditional loan.