Medium term leverage

[jet328]

Been investing for quite a few years using margin lending and its worked well.
Have stuck mainly to the top 200 stocks, although lately I've had quite a bit of success with smaller cap stocks.
The problem I find with these smaller caps, is the lack of leverage as margin lending only applies to the upper stocks.
eg. top 100ASX stock you'll get 70% leverage
300ASX stock you'll get nothing

A medium timeframe seems to suit my strategy best (12-24 months) and also saves on CGT.

Looking for the best way to get some more exposure to the moderate to medium capitalisation stocks.
Had a look at CFD's, but not really familiar with all the options.

Cheers

 

[Bobby]

Been investing for quite a few years using margin lending and its worked well.
Have stuck mainly to the top 200 stocks, although lately I've had quite a bit of success with smaller cap stocks.
The problem I find with these smaller caps, is the lack of leverage as margin lending only applies to the upper stocks.
eg. top 100ASX stock you'll get 70% leverage
300ASX stock you'll get nothing

A medium timeframe seems to suit my strategy best (12-24 months) and also saves on CGT.

Looking for the best way to get some more exposure to the moderate to medium capitalisation stocks.
Had a look at CFD's, but not really familiar with all the options.

Jet be very careful of MM type CFD providers to play with !

Bob.

 

[Mofra]

Jet,

You could try a small or mid cap fund geared into via an portfolio protected loan or similar, many financial institutions have them (some financial advisers can give you a variety of options yyou could never have dreamed existed).

If you are looking to gear into individual small cap stocks directly please post if you find anything interesting.

Cheers

 

[theasxgorilla]

I think you will find that CMC will let you gear 90% to 95% on ASX300 shares, long only. As you get closer to the big cap stocks they'll let you gear 97%.

The catch is that you must gear to their specified amounts.