G'day guys, Over the past 6 months my situation has changed, to the point where I now can put some money into managed funds. My situation is that I have a LOC worth $200K which I have split down the middle providing 2 x $100K facilities with which to invest. My $100K LOC will be used to continue my R/E investing and will be used as deposits for future purchases. The other $100K loan (WBC - 7.52% var) will be used to invest in M/F. At this stage I am looking to put some money into 3 different funds, through InvestSMART using money from this $100K loan. Does anyone see any downside with using money from a loan/loc in this manner without going further into margin lending etc.? This way I am minimising risk by spreading the money through 3 different funds, and am using money at 7.52% (subject to rises/falls) as opposed to a higher margin loan facility. I understand this may 'limit' my exposure to gains also, but feel this is a nice "safe and comfortable" way for me to start out. I can then introduce margin loans if required later down the track if/when I feel more comfortable. BTW the 3 funds I'm looking at are Navra Retail (for income), BT Imputation (growth/income balance), and Macquarie Small Companies Growth (for growth). Looking to put about $20-$25K into each, so I have something left in my loan. Thanks, Andrew.