How it works
Through Merrill Lynch BlueChip20 you can purchase an initial portfolio of Australia’s top 20 companies (companies such as ANZ, BHP, Woolworths and Macquarie Bank) for as little as $5,000. We give you an interest only loan for up to the same amount. You can then add to this investment through monthly instalments, debited directly from your nominated bank account. These instalments can be as little as $500. An equal or similar loan amount is added each month. Each new instalment is then used to purchase additional shares. It’s called instalment gearing.

The BlueChip20 Advantage
With low brokerage fees of only $5 for every $10,000 of shares purchased, your assets aren’t diluted by high entry fees. Over time you’ll build up your own blue chip share portfolio. Your dividends will help pay the interest on your loan which may also be tax deductible for you. With 24/7 online access you can review your portfolio at any time.

A Comparison
If you invested $5,000 in the ASX Top 20 shares in December 2002, this would have grown to $12,195 in five years. By investing $5,000 and then adding $500 each month, your investment would have grown to $63,021. However, if you matched your initial contribution with a loan of $5,000 and matched each monthly $500 contribution with a $500 loan, your investment would have grown to $81,315 (after re-paying principal and interest on the loan).*

The sooner you start taking advantage of BlueChip20, the sooner you will start building your own direct blue chip share portfolio.


* Based on the performance of the S&P ASX Top 20 Accumulation Index from 31/12/02 to 31/12/07. Assumes interest calculated at 2.5% above RBA Cash rate.

All investments have an inherent level of risk. If the amount of your Loan (and interest and fees) were to exceed the net proceeds of the sale of your BlueChip20 Portfolio, you could be required to make a cash payment to the lender to make up the shortfall.

© Copyright 2008 Merrill Lynch & Co., Inc.
This website contains general information only and does not take into account your personal objectives, financial situation and needs. You should read the Product Disclosure Statement in relation to Merrill Lynch BlueChip20 which is available on this website, and consider it carefully before deciding whether to invest in BlueChip20. You should also consider whether you should seek advice from your financial adviser before investing in Merrill Lynch BlueChip20.

The Merrill Lynch BlueChip20 is marketed and distributed by Merrill Lynch Equities (Australia) Limited (ABN 65 006 276 795, AFS Licence No. 235132 ). Equity Margins Limited (ABN 99 004 841 169), a related body corporate of Merrill Lynch Equities (Australia) Limited, provides your Merrill Lynch BlueChip20 linked investment loan.

The Merrill Lynch BlueChip20 is offered under the Merrill Lynch Separately Managed Accounts ARSN 114 818 530, a portfolio service that is registered with the Australian Securities and Investments Commission as a managed investment scheme under the Corporations Act 2001 (Cth). BlackRock Investment Management (Australia) Limited (ABN 13 006 165 975 AFS Licence No. 230523) is the responsible entity of the Merrill Lynch Separately Managed Accounts and issues the interests in the Merrill Lynch Separately Managed Accounts (including Merrill Lynch BlueChip20).