What is margin lending?
A margin loan lets you borrow money to invest in shares, managed funds, master trusts and wraps. This is also known as gearing. Just like investing in property where the loan is secured against the property, your margin loan is secured against your shares, managed funds, master trusts and wraps. As the table below shows, based on the underlying assumptions, you can build a larger, more diversified investment portfolio to increase your potential for wealth creation. Please note that, in the event that actual performance does not reflect the underlying assumptions, your potential for generating losses may also be magnified.