Enjoy the ups and avoid the downs.
This is what BankSA have to say
How do they protect the value of the portfolio?A BankSA Margin Lending Protected Loan allows you to enjoy the benefits when stock markets rise, without the risk of capital loss on your shares. You borrow money to buy a portfolio of shares and we protect their value.
You receive the capital gains, dividends and franking credits on the protected shares. However, if the securities fall in value, your portfolio is protected from any loss. As long as you hold the shares, you will continue to receive any associated benefits. The stock price protection remains valid as long as you do not default on interest payments or terminate your loan early.
If you want to maximise your wealth accumulation and limit your market risk, a protected loan is a smart way to invest.
So the interest being paid on the loan is your only main expense?
If the share portfolio drops by 50%, the only loss of money is through interest repayments of the loan?