Learning Center

Diversification


Minimize your investment Risks with Diversification.

Diversification simply means distributing your funds across as many SMEs as possible to prevent loss in case a SME defaults.

Illustration

In normal condition
(Assumption: Chance of default = 3%)
diversification

When default occurs
(Assumption: Chance of default = 3% | Chance of loss = 30% | Diversify to Similar SMEs)

WITHOUT DIVERSIFICATION,
your returns will decline drastically and can even become negative.

diversification

WITH DIVERSIFICATION,
your returns will stay positive and remain close to the expected rate of return.

diversification

The more diversified you are, the more protected your investment. Even defaults hardly disturb your rate of return.

Reinvestment


Maximize your Returns with Reinvestment

Reinvestment simply means using your capital gains to fund other SMEs while maximizing your returns!

Illustration

Without Reinvestment, you only receive the expected rate of return from single investment. (Assumption: Total capital = RM1,000 | Interest Rate = 20% | No default)

reinvestment

With Reinvestment, you can effectively increase the size of the fund to SMEs while realizing greater returns.! (Assumption: Total capital= RM1,000 | Interest Rate = 20% | Reinvest to Similar SMEs | No default)
reinvestment

Double, triple, maximize your returns with Reinvestment while minimizing your investment risks in case of default.

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