Wednesday, August 7, 2024

Debt

 Advantages of Debt:

  • For Passive income 
  • As a Buffer against Volatility (Help when stock markets crash)
  • Short term Portfolio building  (Can used invest in opportunities that arise in future)

 Less Volatile and less returns compared to Equity.

Dividends and SWP is an exception for   Passive income from Equity

Types of Debt Instruments
Fixed Deposits, Bonds, Certificates of Deposit, Debentures, Government Securities

 

 References

https://youtu.be/dwyWCHqzgn4?si=5-cUl0hODYRN-61_  

https://www.wintwealth.com/blog/debt-instruments/ (Many details can be found here )

No comments:

Post a Comment

ASX Returns = (CAGR) over the past 30 years

According to long-term data from Vanguard, an investment into a simple, diversified basket of local companies (i.e. Vanguard Australian Shar...