There might be many questions that pop up in your mind when you think of the best investment options available in India. It’s good to have these questions cross your mind to get a thorough understanding of the available investment options in India. You can rely on us to guide you through this. We understand that you want to invest in the best asset class to maximize returns with minimum risk involved. While some of you must be investing to achieve financial security, some do it to achieve their investment goals. Whatever is the reason, we have a solution for you!
Many investors are still opting for the same traditional investment options that may have worked earlier. But the falling interest regime that went on for the last few years drove quite a few of these investors towards new-age options. Traditional investments used to be the first preference of investors because they seemingly offered security and comfort. But they also have a major and often overlooked side effect, which is the negligible growth of wealth. So as you can see, while various traditional investment options may lock you in at a fixed interest rate, which is fully taxable, they can also be illiquid. Additionally, with inflation on the rise, the interest income you are left with post-inflation and taxes is negligible.
Here we have the best investment option suggestion for you – Peer-to-peer Lending
Investors worldwide are starting to consider P2P lending as a must approach and an opportunity for high and safe returns. Also, it’s a must-add in the investment portfolio these days. P2P is making news in the alternative asset class with investments that can generate average net returns of up to 10-12% p.a. An advanced form of the crowd-funding-based model, P2P lending platforms such as LenDenClub have been generating waves among the investor community with their ability to generate top-of-the-line returns.
Investors on the platform provide funding to the borrowers seeking to raise funds and, in turn, receive interest for such investment. RBI in India regulates P2P Lending, and at present, as per the regulations, an individual can invest a maximum of up to Rs. Fifty lakhs through the P2P route. However, unsecured loans can pose a default risk, and that’s where diversification comes into the picture. Investors’ funds get invested in a pool of various borrowers with different risk profiles that help them bring down their overall default risk, eventually earning them better returns on their investment.
While for higher returns, P2P lending is the best option available there is, an investor should consider a mix of various asset classes to generate wealth appreciation over long-term prospects.