This portfolio of capital raising products provides a firm the flexibility to choose its optimal gearing ratio, and mix of dividends and debt service. From a saver’s (or investor’s) perspective, a broad portfolio choice of debt and equity products is also desirable.
An investor has the ability to combine these products – and their unique range of risk and return features – to best match their savings needs. The portfolio choice an individual makes generally comes down to issues such as their investment time horizon and income needs.