I was thinking if I should invest in some mutual funds using low-interest rate debt. But then I read this Q&A: Why are daily rebalanced inverse/leveraged ETFs bad for long term investing?
- If I use my loan on regular mutual funds, can I avoid the daily rebalancing effect from leveraged mutual funds?
- If so, is it also good for long-term investment, unlike leveraged mutual funds?
- Are there any other differences between leveraged mutual funds and loan-fueled regular mutual funds?
- I think I don't quite understand the "daily rebalancing". What's different between with and without daily rebalancing?