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Returns on investments come in a three broad forms, capital gains (also known as capital appreciation), dividends or interest. Some investments can entail all three forms of returns but interest is most commonly associated with debt instruments.
Capital Gains 📈
An increase of the value of an instrument or an asset such as property or a share of a listed-company stock.
Dividends 🗳
Payments made by profitable companies as a share of it's revenue after taxes and other expenses.
Interest 📅
Regular payments made to creditors who provide loans to companies. The same type returns can come from crowdfunded investments, but will depend in large part on two things, the type of security you own and/or the type of business you have invested in.
Please be advised that these forms of returns are not guaranteed, even regular interest payments are subject to default and insolvency risk on the part of the business itself.
✋RISK WARNINGS ✋
Crowdfunded investments are alternative investments and are thus generally considered high risk and speculative in nature. You are likely not to recieve dividends or regular income from such investments. There is a substantial chance that you may lose the entirety of your investment. Fundraiser and campaigns listed or eligible for listing on the Round One platform are not endorsements by Round One regarding investability and may not be construed as financial advice. We caution you to speak to your financial advisor on how to best allocate your portfolio based on your needs and objectives.
For additional information, check out our Risk Warnings.