May 24, 2019

Earn stable returns with diversification on Debitum Network platform

Minimizing risk and increasing reward ratio makes for a successful investment strategy in the long haul. ‘Do not put all of your eggs in one basket’ cliche clearly conveys the importance of diversification. Investors should not rely upon a single investment with a futile hope that it will somehow perform well. The way to reduce risk is to spread it over a lot of assets in a portfolio. How can it be done? What benefits does diversification have and how you can take advantage of them on Debitum Network platform?

Diversification helps you to minimize loss

One investment may perform poorly over a specific period of time and if you have built a large portfolio with many assets in it, the other investments would perform better. It would decrease the potential loss and even increase profits on the aggregate of your investments.

If an investor fails to diversify among various risk classes he may suffer the losses that the specific asset class is vulnerable to, for example, stocks to market cycles and specific conditions of the market sector they belong to. We, at Debitum Network, care about the safety of investors’ funds and, therefore, encourage investors to diversify among various industries and specific assets in the industries on our platform: Wholesale, Manufacturing, Logistics, ITT, Retail, Services, Health and etc. Similarly, an investor can diversify among the assets from existing loan originators: Factris Lithuania, Chain Finance, TradeBacking or Aforti Finance. With the minimum investment amount of just 10 Euros, an investor can spread the amount of 200 Euros into 20 different assets and all existing industries on the platform.

It preserves your capital

Inflation eats away your earnings as well as savings if you do not increase our funds by investing them. Diversifying your investments among various risk classes helps you to preserve your capital. Funds spread over a number of assets helps you to protect against adverse market conditions in specific sectors when others are in greater shape.

If you invest on Debitum Network platform, you can spread your investments across a number of industries and assets. By doing that, you will not have to worry about repayment of one or another asset, or if some specific loan defaults (very low probability as not a single default on Debitum Network platform in 8 months). Taking into account, that average annual returns on our platform stand at 9.72%, choosing diversification with us might help you to beat inflation and earn extra, more than using most of the popular traditional investment/diversification. Refer to the chart below!

Investors hedge their portfolio by diversifying

Hedging is one of the ways to grow your portfolio when assets in one market sector crumble and start showing negative values. If you choose assets from 2 different industries on our platform, let’s say Construction and Wholesale, you may see different results in specific investments. One asset can be late due to seasonality effect, the other does great with the repayments coming as scheduled. Thus, you hedge against risks that are characteristic in specific market areas.

Good news is that with Debitum Network, it does not matter which industry asset is from as we have implemented safety measures to protect investors’ capital with a buyback guarantee. It means that if the borrower is late with the repayment by more than 90 days (it depends on the loan originator who issued the loan), the loan originator of that specific loan will have to buy back the outstanding principal and interest on the loan in full. Plus, late loans have penalty rates, that help you to earn extra profits if a specific loan is late. So, at Debitum Network, with the help of buyback guarantee, we help you to hedge against various risks and retain your earned profits in case of a bad loan.

Diversification helps to increase your returns

When you keep all of your balance invested and spread over a wider variety of assets, this increases your potential to increase your returns exponentially. Annual interest rates among various assets on Debitum Network platform are 9%-12%, with the average interest rate paid to investors – 9.72%. With the increase of assets and annual interest rates on the platform, investors can increase their investments by adding more assets to their portfolio and generating bigger returns as a result. As funds are protected under a buyback guarantee and earned profits with the existing balance can be reinvested into even more assets, investors’ returns grow steadily. And if an investor has an active auto-investor plan, he can sit and watch how the interest earned starts compounding.

Check out the asset from Debitum Network platform for diversification

If you are interested in diversification of your investments other than the most traditional ones such as stocks, commodities, bonds and etc., we invite you to check the assets on our platform. To help you with that, we have chosen one for you. It has an annual interest rate of 10.5%, an excellent credit rating of A-, a buyback guarantee, and a penalty rate of 2% (in case the loan becomes late). The borrowing company specializes in the re-sell of authentic branded products for customers in over 100 different countries. It has over 50 employees and over 500,000 EUR in revenues.

Debitum Network - Asset details


Disclaimer: Investments in financial products are subject to market risk and any investment should only be done with risk capital. The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.