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Does borrowing to invest make financial sense?

Lim Hui Jie
Lim Hui Jie • 5 min read
Does borrowing to invest make financial sense?
With rising interest rates, is borrowing to invest a viable strategy?
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While the markets may be down now, some investors may want to take a chance and enter the markets. With this, investors may be able to ride the recovery wave when rate hikes from the US Federal Reserve (US Fed) taper off.

However, some may be thinking that they may not have much to invest, and to put a small sum in the markets for a small return may not be worth the risk. 

Traditional investment rationale says that the more one invests, the more absolute returns one should be able to get, assuming all remains equal. 

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