Fractional Investing is still a relatively new concept, but it’s beginning to transform the way investors with limited capital participate and benefit from assets with usually high-barrier to entry requirements like real estate and business equity.

At the heart of this is our concept of a ‘Biskit’. But what exactly is a Biskit, and how can it present new opportunities for investors? Let’s dive a little deeper.

Fractional Investing is a process that enables potential investors to own smaller shares of a larger asset. It’s made possible by dividing an asset into more affordable pieces through the use of a Unit Trust. Each of these units within the trust is what we call a ‘Biskit’.

So why are we calling a fractional share of an asset a ‘Biskit?’. Think of it like this: Imagine a jar of biscuits, the full jar represents an asset as a whole. When you buy a Biskit, you’re essentially purchasing a piece of the asset, at a fraction of the cost, but you are still entitled to all the same risks and rewards as the whole asset, its just in proportion to how many Biskits of the jar you own.

This could be anything from commercial property, to start-ups or everyday profitable businesses. These high-value assets might be too expensive for a single investor to purchase outright, but when divided into smaller pieces - our Biskits - more investors can have a taste of the investment.

Accessible Investing

The biggest advantage of buying Biskits is accessibility. Traditionally, investing in assets like commercial real estate or business equity requires large capital, making it difficult or too risky for smaller investors to take part.

With Biskits, you don’t need to buy the whole asset, you can simply purchase a fraction of it, opening the door to high barrier to entry investment vehicles that might otherwise be beyond reach.

Diversify with Ease

Buying pieces of high-value assets makes it simpler for potential investors to diversify their portfolios, especially in cases of limited capital where diversification is often out of reach. Owning a mix of Biskits in a wide range of asset classes on the other hand can help mitigate risk and becomes a much more appealing strategy.

Proportional Benefits

Even though you’re purchasing a fraction of the asset, owning a Biskit allows you to enjoy the same benefits and dividends as full share holders. This includes a proportional share of any returns like rental income or dividends from a business.

Additionally, if the asset as a whole appreciates in value, so does the value of your Biskits, meaning investors with limited capital can now be exposed to the same benefits of capital gains that full ownership shareholders are granted.

Here at Biskit our goal is to remove the barrier to entry to high-value assets by providing a simple way for potential investors to grow a diverse portfolio of income generating assets with limited capital.

Learn more here.