Growing your wealth – Gearing in plain English

Posted by: In: 24 Jul 2013 Comments: 0

What is Gearing?

In simple terms, gearing is borrowing money to invest. The investment could be in direct shares or managed investments, such as an equity trust, balanced fund or property. Gearing is, in essence, directed towards producing a larger investment return by using borrowed funds, often in addition to your own funds, so that financial goals can be achieved more quickly.

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