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.
(Assumption: Chance of default = 3%)
When default occurs
(Assumption: Chance of default = 3% | Chance of loss = 30% | Diversify to Similar SMEs)
your returns will decline drastically and can even become negative.
your returns will stay positive and remain close to the expected rate of return.
The more diversified you are, the more protected your investment. Even defaults hardly disturb your rate of return.
Maximize your Returns with Reinvestment
Reinvestment simply means using your capital gains to fund other SMEs while maximizing your returns!
Double, triple, maximize your returns with Reinvestment while minimizing your investment risks in case of default.