Was wondering if those with more knowledge/experience could provide more information regarding these structured investments?
CommSec is currently offering a new Capital Series Access China https://www.comsec.com.au/invest/CurrentOffers.aspx and after reading the PDS, looked kind of interesting. Upside of the HSCEI with capital guarantee. if held to maturity. HSCEI is up 750% over 7 years.
I'm confused as to the tax position/deductibility of interest if one was to gear into it? If it doesn't generate income/dividends over the 5 years, is the interest deductible over the term if you decide to take delivery of the assets (at the moment BHP shares) at the end of the term? It would be similar to purchasing shares with a margin loan that don't pay dividends in the first 5 years, you'd still be able to claim the deductions on it.
Anyways, I'm not spruiking the product, just after some more info and your opinions, especially if you have invested in previous Capital Series products.