Geared Growth Fund
The fund aims to enhance the expected performance from investing in growth assets by gearing the fund to maximise the returns from capital gains over the long term. The level of gearing can vary between 0–50% of the fund’s value.
It aims to achieve returns – after fees but before tax – of at least 5.5% per year above inflation over any 10-year period.
There will be significant movements up and down in the value of the fund.
The fund invests predominantly in growth assets, with little or no allocation to income assets and may borrow to leverage up the total exposure to equities.
For more information on the risks of investing in the Geared Growth Fund, see:
- Other specific risks in '4. What are the risks of investing?' in the Product Disclosure Statement
- Geared Growth Fund risk in '2.9 Risks' in Other Material Information.
The risk indicator is rated from 1 (low) to 7 (high).
The rating reflects how much the value of the fund’s assets goes up and down – the 'volatility'. A higher risk generally means higher potential returns over time, but more ups and downs along the way.
While risk indicators are usually quite stable, they do shift from time to time. Check the most recent risk indicator for this fund in the latest quarterly fund update.
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