Security, liquidity and investment strategies
Security
What makes Bondster unique is that it enables investing in loans that are secured by real estate or other movable property. If the borrower fails to make repayments, the pledged property is sold. The funds obtained this way are then used to satisfy investors’ claims.
Another way of securing an investment is through a buyback guarantee that is offered with some loans. In case the borrower defaults, the loan provider guarantees to return the whole amount invested, including interest.
85 %
of our investments come with a buyback guarantee
2,16 mld. Kč
provided in secured loans
Risk and investing are inseparable, but our ways of securing investments coupled with diversification on the investor's part reduce the risk to a minimum.
Liquidity
The Bondster platform offers a number of tools you can use to determine when your invested funds will be at your disposal again.
When choosing a loan to invest in, you are also choosing its maturity. Bondster offers loans with a maturity of a few weeks up to several years.
Some loans allow you to terminate your investment early which means that you can withdraw from the investment at any time. However, early termination may incur fees.
The guarantee of liquidity provides you with the possibility to withdraw the invested amount immediately and at any time.
Regular withdrawals allow you to terminate an investment at regular intervals – every month, quarter, or year.
Manual and automated investing
There are two ways of how you can invest on Bondster – manually or through preset investment strategies.
In manual investing, you choose the loans you want to invest in yourself. This option can deliver the highest return but requires some time spent for selecting individual loans. A preset investment strategy invests on your behalf; investments are carried out automatically according to the preset parameters.
This feature ensures that your money will not lie idle in the account and will automatically generate returns over time while also ensuring the diversification of your investment portfolio.
FAQ How to set up Investment strategies
Preset investment strategies
If you choose automated investing, there are three strategies to choose from: Diversified, Conservative and High-yield. The strategies differ in their expected returns and risk levels. A higher expected return is associated with higher risk and vice versa.
All three strategies apply the principle of thorough diversification, which consists in dividing the invested funds among many different loans, which reduces risk and increases the security of the invested funds proportionally. Moreover, you can choose a different investment strategy for each currency (CZK, EUR).
USE INVESTMENT STRATEGIES
What are the investment strategies?
Diversified strategy
Average annual return:
13,13 %
Aims for the best diversification possible by offering access to all EUR loans on the platform.
Includes loans with and without a buyback guarantee.
No more than 15% of funds are invested with one loan provider.
Automatically reinvests principal and interest received.
Rating
C to A+
Conservative strategy
Average annual return:
12,54 %
Aims for the highest-quality portfolio with investments in loans provided by the most reliable loan providers.
Loans with a buyback guarantee.
No more than 15% of funds are invested with one loan provider.
Automatically reinvests interest earned.
Rating
B to A+
High-yield strategy
Average annual return:
13,53 %
Aims for the highest return on one’s portfolio by investing in loans with the highest interest rates.
Includes loans with and without a buyback guarantee.
No more than 15% of funds are invested with one loan provider.
Automatically reinvests interest earned.
Rating
C to A+
Secured by real estate
Average annual return:
9,00 %
Suitable for investors who prefer a longer-term investment secured by real estate with the possibility of early withdrawal.
Interest offered: 6% – 10% p.a.
Maturity: 240 months max.
Loans with the possibility of regular withdrawal from the investment once every six months or a year after making the investment.
High-yield
Average annual return:
10,58 %
Suitable for investors who want to invest in consumer loans and support Czech businesses with a proven history.
Interest offered: 6% – 15% p.a.
Maturity: 0 – 60 months.
Loans with short maturity or the possibility of regular withdrawal from the investment once every six months or a year after making the investment.
You might ask
We are a team of professionals with extensive experience in the financial world and P2B investing. We founded BONDSTER, which is tailored to a wide range of investors because we realized there is a lack of quality investment opportunities on the market. On our platform, investors can easily invest in the loans offered from the comfort of their homes, without the need to know much about how the financial markets work. The owner of the company is CEP Invest Private Equity, SE. A strategic partner of the project is ACEMA Credit Czech, a.s. You can learn more in the “About Us” section.
BONDSTER is unique because it offers investors the possibility to invest easily and quickly while also helping them to diversify their investment portfolios. What is also unique is the option to invest in loans secured by real estate, other movable property (e.g. automobiles, machinery, etc.) or cryptocurrency. Some of the loan providers on the BONDSTER platform also offer a buyback guarantee for selected loans in case the borrower defaults on them. Especially with real estate loans, there is a possibility to withdraw from the investment at regular intervals. As a result, these hedging methods significantly reduce investment risk for investors. One of the main advantages of the platform is also a very simple online management of the investor’s account.
For each investment made, you will receive a Claim Assignment Agreement which includes a claim note stating the investment parameters.
More FAQ
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