Key Benefits of Self Funding Instalment Warrants
- Potential accelerated capital growth compared to a direct share investment
- Increased exposure to dividend income and franking credits
- Long-term self funding geared investment
- Tax effective investment
- A leveraged investment with no margin calls
- Can be used by Self Managed Super Funds (SMSF) seeking geared investments with low cost and low administration
More information on the Benefits Of Self Funding Isntalment Warrants can be found on the ASX website
Key Risks of Self FUnding Instalment Warrants
Potential investors should ensure they read the Product Disclosure Statement and should reach an investment decision only after carefully considering, with their advisers, the suitability of the warrants in light of their particular circumstances, taking into account the risk factors relating to the warrants set out below:
- Leveraged downside exposure and potential for capital loss
- Performance by the Issuer and Guarantor of Obligations
- Possible illiquidity of trading market
- General market risks and Legislative risks
- Exercise of Discretion by the Issuer
- Extraordinary events
- National Guarantee Fund – not a Guarantor in all cases
- Potential Conflicts of Interest
Tags: investment tax, self managed super, conflicts of interest, product disclosure statement <BR/>
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