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Borrowing to Invest

Risky business

MoneySmart provides some sage advice on borrowing money to invest.

Borrowing money to invest is risky business. The high returns can seem fantastic when markets are rising but the losses can be huge when the market drops.

Borrowing to invest is also called 'gearing'. Look at the pros and cons before you decide if this strategy is right for you.

See full page here.

Reproduced with permission of ASIC.

Source: ASIC's MoneySmart website,, 30 March 2011.