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Buy a share portfolio instantly, without a large cash outlay upfront PDF Print E-mail
nest eggMany new investors understand the long-term capital growth and income investing in shares can offer, but don’t have the cash to get started.

Protected lending is a way to invest in shares where you:
  • don’t need cash upfront (just amounts along the way)
  • get all the benefits of investing in shares - capital gains, dividends and potential franking credits
  • don’t risk your capital.
How does it work?
  1. You borrow 100% of the funds you want to invest and buy a portfolio of shares
  2. You pay interest on the money you borrow, which includes an amount for the cost of borrowing plus an amount for protecting your capital
  3. At the end of the loan, if any of your shares have risen in price, you benefit from the capital gains, and if any of the shares have fallen in price your capital is protected.
Why this strategy can work
Protected lending gives you benefits like:
  • allowing you to make the most of the asset you do have - your ability to earn a high, steady income
  • the ability to borrow 100% of the funds you want to invest
  • peace of mind that your loan capital is 100% protected
  • no margin calls
  • potential tax efficiency
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General Advice Disclaimer & Product Disclosure Statement

The advice is General Advice Only. It has been prepared without taking into account any individuals objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs.  You should obtain a Product Disclosure Statement relating to the products mentioned, and consider the statements before making any decision about whether to acquire the products. Peter Horsfield is a Certified Financial Planner (CFP), and is a Practitioner Member of The Financial Planning Association of Australia FPA. Peter Horsfield is authorized to provide advice through Patron Financial Advice Australian Financial Services  License Number 307397.
You should seek advice from a qualified professional before proceeding on (02) 84257802 or financialplanning@fmw.com.au