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Regular gearing involves combining your own equity with borrowed funds to invest into selected managed funds, master trusts or wrap products on a monthly basis - a powerful tool to help build wealth gradually. It is also a simple and automatic way to drip-feed money into investments, allowing you to take advantage of dollar cost averaging - buying more when the market is down and less when the market is up. This can smooth out the highs and lows of investing.

Why would I regularly gear?
We all want to reach our financial goals sooner. Whether your goal is to save a deposit for a home, save for your child's education or build an investment portfolio, you can get there faster by combining margin lending with a regular investment plan - the BT Margin Lending Regular Gearing facility. All you need to get started is $2,200 to invest.

Regular gearing gives you all the advantages of regular saving combined with the advantages of gearing.

Advantages of regular saving

• Achieve a disciplined approach to investing
• Benefit from dollar cost averaging - smooth out the highs and lows of investing
• Automatic investment each month - saves frustration of having to 'time' the market

• Gear your savings to have more money working for you
• More money invested means potentially increased returns
• Having more money to invest allows you to diversify your investments
• Tax effective because:
  - interest may be tax deductible and can be prepaid up to one year in advance
  - imputation credits on Australian shares purchased with borrowed money can further reduce tax paid on income
  - borrowed against your existing portfolio unlocks cash without creating a CGT liability
  - you may be able to defer payment of CGT until you sell your investments
  

• Allows you to invest more money more frequently
• You can double the amount you invest each month
• An automatic and simple approach to achieving your goals

• Minimum equity $2,200 for a $5,000 loan with a 70% gearing ratio
• Minimum initial investment $1,000 per managed fund
• Minimum monthly loan advance $500
• No minimum regular investment required if you have sufficient borrowing capacity in your margin lending portfolio
• Minimum monthly investment $250 per managed fund