In the ever-evolving landscape of personal finance, individuals are increasingly exploring strategic ways to leverage debt to their advantage, aiming to boost wealth creation and financial growth. One avenue gaining popularity is the use of geared shares in managed funds, coupled with the importance of maintaining a stellar credit score and paying off non-tax-deductible debt.
This month we put a spotlight on CFS Geared Share fund which has been one of our favourites to purchase more shares using internal gearing within the fund. The fund started in 1997 and has returned an average of 14.24% per annum compared to the benchmark of 8.65% per annum for these types of funds. (Please note this is not personal advice or a recommendation to invest.)
In the table below, you will notice this fund pays well above average income every year. That’s because the manager is selling assets to manage debt levels and the profits are paid to investors. The income is paid to your account for your use or can be reinvested into the same fund or other investments to suit your goals and objectives:
Source: Zenith Research, CFS Geared Share, performance as at 29 Feb 2024. Rated: Recommended
Before investing your money or to find out if geared share funds are right for you, please book a call to discuss with Kora Drage.
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