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What is margin lending?
What is Margin Lending
Using your existing shares, managed funds, master trusts or cash as security, BankSA Margin Lending will lend you funds, as a line of credit. As the table below shows, you can build a larger, more diversified, investment portfolio to increase your potential for wealth creation.
| Without Margin Lending | With Margin Lending | |
| Your Equity | $33,000 | $33,000 |
| Borrowed Funds | $0 | $67,000 |
| Total Investment* | $33,000 | $100,000 |
| Investment Value (01/03/00) | $38,080.75 | $115,396.23 |
| Gross Profit | $5,080.75 | $15,396.23** |
| Return on Equity | 15% | 47% |
* Investment in Australian Stock exchange shares valued at $13.25 on 01/3/00 and $15.29 on 01/3/01.
** Excluding dividends, brokerage, stamp duty, interest, fees and charges.
