And that’s a wrap for August! Missed one of our weekly videos? Here’s a recap for you. This month, we explained the differences between active and passive investing, showed you how to close your Bondora account, and introduced you to the Bondora blog. Jump in below for more.
Differences between active and passive investing
When making investments, there are two main strategies to choose from: active and passive. There’s much debate about which strategy is better, as there are advantages and disadvantages to both. There’s no right or wrong; it all depends on what you want from your investments.
To help you decide which approach is best for you, we’re going to highlight the 5 differences between active and passive investing.
1. Level of involvement
Active investing is a hands-on approach, taking advantage of short-term price fluctuations by pivoting in or out of investments. In contrast, passive investing is a long-haul strategy that involves less buying and selling. Go & Grow is an excellent example of easy, passive investing.
2. Expertise required
To have an effective strategy, active investing requires thorough analysis and expertise to know when to buy or sell an investment. On the other hand, the passive strategy does not involve ongoing research.
3. Their goals
The goal of passive investing is to match the market return, whereas the active strategy is to beat it or outperform a given benchmark.
4. Range of potential returns
Investors that use the active strategy have a wider range of potential returns. Active investing has greater risks and the potential to generate higher returns as compared to the passive approach.
Passive investing tends to be more cost-effective since it is a buy-and-hold strategy. With active investing, transaction costs for buying and selling as well as portfolio management fees can add up quickly.
How to close your Bondora account
There may come a time when you wish to stop investing and want to close your account. Maybe you’ve reached your investment goal, and you’re ready to buy a house, or you need to withdraw money for an emergency.
Here’s a step-by-step guide for how to close your account.
It’s important to note that you cannot close your account if there is money in your Wallet or Go & Grow, or you have other investments in your portfolio. On our support page, you can find step-by-step guides on how to liquidate your portfolio and how to withdraw funds. After that’s done, you can close your account.
Once you close your account, it cannot be reversed. Please download any necessary reports before you proceed.
To close your account, click on the Settings tab on the left panel, then, the “Close account” section. Next, click the green “Close account” button to advance. A new window will pop up, confirming that you want to close your account and that there are no remaining funds or investments. Here, select the red “Delete” button. A 5-digit code will be sent to your registered mobile number. Enter it in the “PIN-code” field, then click “Confirm”. Your account is now closed.
We regret seeing you go, and we hope you will invest with us again in the future. If you have feedback that you would like to share with us, you can email us by completing the contact form found on the support site.
Bondora blog – the news source for everything Bondora
In addition to our YouTube channel, we also have a blog where we share valuable content for our investors.
Visit bondora.com/blog to check it out. Here you can find a wealth of information about personal finance, Bondora, and how to make the most of your account.
There are 9 different sections, such as:
- Market & Pricing posts, which give you an analysis of our most recent investment and lending stats
- Finance Tips articles; that can help you make the most of your money, and
- Platform Overview, which provides you with the latest Bondora updates.
You can also view the most recent articles on the Dashboard page when you log in to your account. Or, you can access the blog from the drop-down menu after clicking on your name in the top right-hand corner.
And that’s it!
Remember to subscribe to our channel, so you won’t miss any future videos!