Enter to Win

Unleveraged return is a classic investment approach where an investor invests their own funds without borrowing. In this case, the profit is calculated solely on the basis of the increase in the asset price or dividends and coupons received. The main advantage of this approach is the minimal risk of losing capital in excess of the invested funds. For example, investing in stocks or REITs without leverage allows you to earn a stable return, but its scale is limited by the size of your own capital.

Leveraged return involves attracting borrowed funds to increase the investment volume. This approach allows you to potentially increase profitability, since even a small increase in the asset price can bring a much higher percentage of your own capital. For example, if an investor has $100,000 and uses a loan for $100,000, the total investment is $200,000. If the asset grows by 10%, the return on equity increases to 20%.

levered irr vs unlevered irr - it's up to you