Let us say if you want to invest 1 crore in any asset (gold, stocks, land etc.), there are basically few ways to do it - use your money, use borrowed money or the combination of both.
Using some “borrowed” money to invest is what is called as “Leverage” in investment terminology.
Leverage can be done in numerous ways - like taking personal loan, bank loan on asset, using F&O etc.
There is no way to “borrow” money to invest without paying some “interest” for the privilege of borrowing. Hence, leverage is good only if you can earn more returns from the invested asset than the cost of leverage.
Using F&O, there is no explicit interest stated like when you take bank loan. But there is still a cost of leverage - which usually comes down to 10-15% per annum.
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