A protected loan with no interest payments – Strategies for a rising market (cont.)
Self Funded Instalment Warrants have long been the preferred method of gearing for retirees and SMSFs and offer one of the lower risk ways to gear your portfolio.
Self Funded Instalment Warrants are a combination of a loan, your deposit and an insurance policy (put option) used to purchase shares.
The benefit to investors is that they only need to fund 50%-60% of the purchase price, the remaining 40%-50%