Geared Share Funds are ‘internally’ geared managed funds with investment strategies focused towards listed equities. Basically, the fund manager uses the fund’s assets to support the borrowing.
The investor’s liability and loss is limited to the amount they invest, so there are no margin calls for investors to meet. As such, in the worst case, you total investment may suffer but, unlike a margin loan, there is no requirement for you to service or repay any residual loan.
PGFS can provide you with clear and appropriate advice when considering a geared component as part of your wealth accumulation strategies. We will consider your personal circumstances, including such specifics as surplus cash flow and investment timeframe, when advising you in this area of your financial affairs.