Debt vs Equity Investments – Which is Better?

While debt and equity investments can both potentially deliver good returns, there are differences that may make one more appealing to you than the other.

Most investments can be categorised as either debt investments or equity investments. In an equity investment, you buy an asset and your profit is related to the performance of that asset.

In a debt investment, you loan money to a person, a business, or a government institution. With a debt investment, your profit is not directly related to the performance of the borrower. Continue reading “Debt vs Equity Investments – Which is Better?”