Margin lending enables you to invest more money, and thus has the potential to improve your investment returns. By utilising a gearing strategy, an investor is often able to use the increased funds to better diversify their portfolio, and not rely too heavily on the performance of any one asset.

Investors need to be aware that whilst gearing can magnify your returns, it can also magnify your losses.

MARGIN LENDING EDUCATION

Margin lending involves borrowing to invest (gearing) and can be used to set up a new investment portfolio, increase an existing portfolio or to free up existing capital. Margin lending increases financial leverage by providing investors with an investment loan which can be used to buy managed funds and shares or other eligible securities.