In my margin loan I have an AMP fund returning 12% paid monthly back into my loan account reducing my overall loan. Today I have a letter from them saying there will be a capital gains return in June and I have the option of staying as is and have the extra paid into the loan, pick a $ amount to recive each month with the rest reinvested or reinvest everything. I am unlikely to ever draw an income from the fund or bother too much about how much debt I am capitalising. Doing some rough numbers over 10 years based on 12% returns a loan rate of 8.85% and a starting capital of 30k all borrowed. Used 3 year average for c/g. Capital $93,175.00 after 10 years compound. Capitalised interest $70,050.00 Net gain $23,125.00 As above with 2% c/g $111,217.00 Interest $70,050.00 Net Gain $41,167.00 Retired debt over 10 years $9,360.00 by paying returns into the loan. $15,149.00 with savings on interest paid. As above with 2% c/g $15,120.00 $24,174.00 with savings on interest paid. (will be a bit less due to capital payment being once a year not monthly) Does my maths add up? Anything I have missed? Any reason not to reinvest the lot? Holding cost is $213 a month.