Investing is a crucial aspect of financial planning, as it allows individuals to grow their wealth and secure their financial future.
There are various investment types available to investors, each offering different benefits and risks. One key aspect of investing is understanding the different types of investments and the potential returns they offer.
One of the main distinctions in investment types is the difference between equity and debt investments.
Equity investments involve owning a portion of a company or asset, which can provide investors with the potential for appreciation, depreciation, and cash flow.
This means that investors who own equity in a company can benefit from the company's growth and success, as well as potentially receive dividends or other forms of income.
In this episode of Tech Equity and Money Talk, Michael Episcope from Origin Investments discusses the rise of credit and debt funds in the private equity market.
He explains that these funds invest in a part of the capital structure that's more protected than equity, aiming to provide stable income through yield.
Listeners are advised to be cautious of inexperienced managers rushing to invest due to the pressure of closed-end funds.
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Listen to the full episode here:
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YouTube:
https://youtu.be/0mNWbvETv5U
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Audio Podcast:
https://www.techequityandmoneytalk.com/debt-and-credit-funds