Leverage - the process or technique involving the use of borrowed capital for the purchase of an asset, with an expectations income from the asset post-tax deduction would surpass the borrowing cost. Now, taking a chartered accountant loan can be an effective way to boost your potential returns through leverage.
As evident from the definition of leverage, a CA loan for investing in share market can be a profitable decision as long as the income gain from the asset is considerably higher than the interest you are paying towards the loan.
Having said that, there are a few things you must keep in mind before taking a personal loan for CA to invest in share market.
Experience is a must: Investing in share market is not an easy thing, and not everyone is qualified enough to bid their luck in the market. Investing in share market requires adequate experience to anticipate the fluctuations accurately to safeguard yourself from loss. Thus, if you don’t have the professional experience, take help from someone who has.
A good strategy is the ray of hope: Be it hardcore business or investment in share market, a good strategy is a key to success. Hence, formulate a strategy that can minimize the negative probabilities and boost the chances of achieving a favourable outcome.
Securing personal loan for CA at lowest interest rate is essential: The last but not the least, the most crucial prerequisite is obtaining a personal loan for CA at the lowest possible interest rate to maximize the gains from the investment.
Read More :- Chartered Accountants Invest in Share market with the help of CA loan
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.