Instalment Plus
Instalment Plus is an additional feature of the Leveraged Equities Margin Loan, which through regular monthly contributions and borrowings can progressively build an investment portfolio.
What is Instalment Plus?
Instalment Plus is a feature that may suit investors who want to implement a regular savings and investment plan to progressively build an investment portfolio. You determine the initial contribution, initial investment and the Acceptable Investments that you intend to invest in. You also determine the monthly contribution and monthly investment.
The minimum Initial Investment for Instalment Plus is $3,000 with a minimum Initial Contribution of $1,000.
The ongoing minimum Monthly Investment is $500 with a minimum Monthly Contribution of $250.
Case Study
You decide on an initial contribution of $1,000 and an initial investment of $3,000. You choose to invest equally in 3 different managed funds each with a Lending Ratio of 70%. This means that your initial loan will be $2,000 and that you will have $1,000 invested in each managed fund.
Each month you elect to contribute $250 and invest $600. This means you will borrow $350 each month. After the first month your facility balance will increase to $2,350 (assuming no interest, costs or other charges are capitalised to your loan account) and you will have invested $1,200 in each of the managed funds.
Download
Ensure you download the Margin Loan Product Disclosure Statement and Margin Loan Product Guide which includes Instalment Plus, for more information. Read each part of the terms and conditions and Application Form, and obtain appropriate advice before applying.
How to Apply
You and any Guarantor must read the Product Guide in its entirety before applying for a Margin Loan with Instalment Plus.
You can apply for a Margin Loan as:
- an individual or two individuals (called joint borrowers) who are at least 18 years old;
- a company; or
- trustee of a trust (except as trustee of a self managed superannuation fund).
Refer to the checklist when completing the Application Form and return completed and signed forms to your nominated Financial Adviser or Broker. Alternatively, return forms directly to us. Contact details can be found on the Contact Us page.
