Protected Equity Products: Can you have your cake and eat it?
borrowing cost, investment performance, investment strategy, poor investments, protected equity products, smart investors, tax deduction
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Protected Equity Products (PEPs) are heavily marketed at this time of year. They are promoted as an opportunity to benefit from share market growth, without the risk of losing capital. They involve borrowing up to 100% of the purchase price of a basket of shares for a minimum period (generally 3 - 5 years). You keep the dividends and any gains and are protected against investment loss.
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