It is generally known gearing offers the potential to grow wealth at a faster rate than no gearing. However, many believe that a high growth rate is required for geared investments to breakeven. This case study shows how a Protected Loan with a 50% LVR can outperform a non-geared portfolio at a growth rate of just 0.7%. 

Share market volatility over the last few years has resulted in many investors retreating from equities and fleeing to cash. With three year term deposits currently paying 5.80% p.a. it's not surprising that investors are finding this asset class attractive.  

With SMSF investors looking for new ways to boost returns and earn more income, gearing has become increasingly popular. Especially with contribution caps limiting the ability of members to top up their investments without a tax penalty.