CFS Geared Share FSF0043AU Quote | Morningstar (2024)

FAQs

What is a geared fund? ›

GEAR combines funds received from investors with borrowed funds and invests the proceeds in a broadly diversified share portfolio. The fund is 'internally' geared meaning all gearing obligations are met by the fund.

The number of shares a company has out in the wild is also important. A company with a lower per-share price but a high share volume can be worth more than a company with a higher price but fewer shares.

Higher Than 50%: A gearing ratio that falls in this range is typically considered highly levered or geared. As a result, the company would be at greater financial risk, because during times of lower profits and higher interest rates, the company would be more susceptible to loan default and bankruptcy.

Investors may view companies with a high gearing ratio as too risky. A highly geared firm is already paying high amounts of interest to its lenders and new investors may be reluctant to invest their money, since the business may not be able to pay back the money.

A round lot is a standard number of units of an investment product. A round lot of stocks is 100 shares or any number divisible by 100. A lot is amount of securities bought in a single transaction on an exchange. A round lot is typically 100 shares but investors don't have to buy in round lots.

Most experts tell beginners that if you're going to invest in individual stocks, you should ultimately try to have at least 10 to 15 different stocks in your portfolio to properly diversify your holdings.

Once a company goes public and its shares start trading on a stock exchange, its share price is determined by supply and demand in the market. If there is a high demand for its shares, the price will increase.

The geared cost of equity is the actual cost of equity in a geared company. The ungeared cost of equity is what the cost of equity would be if there was no gearing in the company (and will be lower because with no gearing there is less risk for shareholders).

What's a Geared Growth fund? The Geared Growth Fund invests mainly in growth assets and is designed to help you magnify your long-term returns by giving you access to gearing. 'Gearing' simply means borrowing money to invest.

There are risks associated with an investment in GEAR, including market risk, gearing risk and lender risk. Investment value can go up and down. An investment in the Fund should only be considered as a part of a broader portfolio, taking into account your particular circ*mstances, including your tolerance for risk.

Is gear a good ETF? ›

The Fund commenced in April 2014 and has a long-term track record of performance. Over the last five years to July 2023, the Fund delivered a performance return of 8.55% p.a. This is compared to the S&P/ASX 200 Index's performance of 7.47% p.a. over the same period.