Opening an InvestSMART PMA with Fundlater
No, only payment instalments go towards paying off the loan.
Yes, you can close your InvestSMART PMA at any time.
InvestSMART will sell down your portfolio and deduct any outstanding instalments. Once this is completed, we will return the remaining amount to you.
InvestSMART bears the risk. If the sum of remaining instalments is greater than the portfolio's value, the investor will receive no money but will not owe InvestSMART either.
No, a Fundlater non-recourse loan is not a margin loan. As long as you can continue to make the repayments your account will continue to operate no matter the market movements.
Market volatility is a risk every investor takes. While we take great care in ensuring our portfolios are diversified across multiple asset classes we are aware investment markets can fall. The benefit of InvestSMART’s Professionally Managed Accounts using a fundlater non-recouse loan is as long as you are able to make the repayments, market movements are irrelevant. There is no risk of crystalizing losses unless you choose to close your account. This means you can allow your portfolio the time needed to recover from any negative market movements.