The concept of gearing an investment is not foreign to Australian investors. Of course, one of the nation's favourite past times is to debate the pros and cons of negative gearing.
However, while they might be familiar in so far as it pertains to property investments, they're likely less familiar with the concept of gearing when it comes to their equities portfolios. That said, such strategies are gaining traction in Australia, with several new products having come to market in recent times.
Here, First Sentier Investors' deputy head of Australian equities growth David Wilson explains the benefits and risks associated with gearing and why ASX 100 companies are ideal candidates for such a strategy.