Debt vs. Equity: Choosing the right investment nstrument

Invesdor offers two financial instruments: debt and equity. We offer these instruments, so investors can diversify their portfolios efficiently with us.

Each instrument has its place, as they serve different purposes within an investor’s portfolio. We encourage our investors to diversify across product types — and across countries.

Let us walk you through our two investment instruments and help you assess which one fits your investment strategy.

Fixed-interest investments

Fixed-interest investments, or bonds, provide regular interest payments and predictable returns. They can add stability and a steady income stream to your investment portfolio.

At Invesdor, we specialize in bonds that deliver competitive yields – offering annual interest rates of up to 12%.

Key features of fixed-interest investments

• Predictable returns: Bonds provide regular interest payments, helping you plan your cash flow.
• Defined term and repayment: Your initial capital is repaid in full at the end of the term, along with any outstanding interest.
• Diversification: Fixed-income investments can complement equity investments and balance overall portfolio risk.

Equity investments

Equity investments allow you to share in a company’s long-term growth and success. By investing in equity, you become a co-owner and benefit from the company’s value creation – for example through an IPO or a company sale.

Key features of equity investments

• High return potential: Equity investments provide access to substantial returns when a company grows or hits major milestones.
• Alignment with founders: As an equity investor, you participate in the company’s journey alongside the founders and major stakeholders.
• Profit participation: Equity holders are entitled to a share of the company’s profits, whether paid out through dividends or realized during a company sale.

Which investment instrument is the right one for me?

Consider your investment horizon. Ideally, your portfolio balances short-term investments with long-term opportunities.

Short-term investments aim to generate returns within months or a few years and prioritize liquidity. Long-term investments, on the other hand, are designed to build wealth over several years or decades.

Recap of Invesdor’s investment instruments

• Bond investments are ideal for those seeking stable income and clear repayment terms.
• Equity investments suit investors who are prepared to take on more risk to participate in long-term growth and value creation.

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