Gearing is the strategy of borrowing money to invest. Just as you take out a loan to buy a home, you can also borrow money to invest in
other assets, such as shares, property or managed funds.
Gearing enables you to boost your investment earning power by increasing the amount of money you have available to invest. While investing with someone else’s money sounds like a great strategy (and it can be), there are risks involved – so it’s not suitable for everyone.
Information in this document is based on current regulatory requirements and laws, as at 1 July 2020, which may be subject to change.
When deciding which investments are right for you, it is important to understand the trade-off between risk and return and how to manage investment risk.
By setting goals, planning ahead and being smart with your savings and debt strategies – you can actively grow your wealth even from a
modest start.
