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 experience in both finance and P2B investing. Apart from the online investment platform Bondster, we also run the investment marketplace www.PujcMeFirme.cz, for example. We established Bondster, which is tailored to the needs of a wide range of investors, because we were aware of the lack of quality investment opportunities on the market. On our marketplace, investors can easily and without a deep understanding of the financial markets invest in the opportunities offered on our platform. All of that from the comfort of their homes.
The company is owned by CEP Invest Private Equity. A strategic partner of the project is ACEMA Credit Czech, a.s. You can learn more in the About us section.
Bondster makes investing quick and easy, enabling investors to diversify their portfolios. Another feature that makes it unique is the possibility to invest in loans secured by a lien on real estate and movables. Unlike other marketplaces, Bondster offers a buyback guarantee for selected loans to protect investments in case the borrower defaults. All of these methods of hedging significantly reduce investment risk. On top of that, managing the investment account is easy and intuitive.
For each investment you make, you receive an Assignment of Claim Agreement with an overview of the claim and details of the investment.
More FAQ
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