Does anyone have experience in taking a \\\~200k loan to invest in index funds? Where I’m from personal loans up to \\\~500k charge 2% per annum for up to 5 years.
Assuming that the average returns around 9-10% from a bunch of index funds, I’ll be able to gain the margin of 6-7% per annum.
I’m wondering if anyone has done this / can share their advice on whether this theory works in a real world setting.
Am fresh out of college so if this sounds silly, please kindly educate me on why it won’t work. Thank you!