Instalment gearing: Build up a margin loan slowly

Borrowing to invest used to be for the wealthy sophisticated investor or those with a risk-taking streak. But there's a new range of margin loan offerings that help lower the risk and make it accessible to any investor with about $2,000 to get started. They combine the power of margin lending with the discipline of a regular savings plan. Typically, there is a minimum investment of $1000 to $2500 and a monthly minimum investment of $250. Every month, as you invest your $250, the lender matches it with another $250 of loan capital, giving you a gearing level of 50 per cent. You can choose to invest in shares or a very wide range of managed funds including those from all the major fund managers. Of course there's a cost to borrowing money – the interest rates and fees. Go to our instalment gearing comparison table for full details of what's on offer.

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