Q & ACategory: Investmentis balance transfer a good approach to do leveraging?
Yee liang asked 2 years ago

hi kc, 
 
is balance transfer on 0% installment plan a good leveraging approach in investment?
like parking the 12 month 0% installment to money market/bond fund even some equity fund
 
Atas

2 Answers
KCLau Staff answered 2 years ago

Hi Yee Liang, yes that works. Since you are not paying interest, it is like no cost to you.
However, the zero interest is short term (12 months). So it is hard to ensure return in stocks in such a short period.

Hazwan Syahmi answered 2 years ago

yes, i used that before. dont forget to ask about their service charge eventhough zero interest. My experience, i used balance transfer for a year with zero cost , but they charge me up front RM200 for service fee for that balance transfer.