FMPP® vs other investment options

FMPP® vs other investment options

In this blog, we shall take a look at why LenDenClub’s FMPP® is a better alternative to traditional fixed-income asset classes. To begin with, we shall understand the entire mechanism of how P2P, in general, and FMPP®, in particular, offer a resolution to challenges with the traditional investment avenues, and then enumerate the benefits of investing in FMPP®.

Challenges with traditional investment avenues

The investment market is replete with fixed-term, fixed-maturity investment options. After all, term-based investment avenues have their own shares of benefits. They offer fixed returns upon maturity. 

Fixed-term, fixed-maturity investment avenues are great for portfolio diversification. High returns-yielding options, namely market-linked investment instruments, are conditional upon numerous factors on which the market is so precariously dependent. Hence, fixed deposits and recurring deposits, and post office investments are a safe bet for prudent investors. 

The only shortcoming with such traditional investment avenues, however, is that they yield very low returns, so much so that they don’t even outdo the inflation rate. This is because the traditional investment avenues work on an age-old bank-pooled financial model; the facilitating companies, namely banks and the post office, work on a mediator-heavy mechanism. Right from the loan application to the approval stages from the borrowers’ side and right from the selection to the lending stages on the lenders’ side, banks have numerous working heads involved. Most traditional fixed-income asset classes do not yield good returns; the returns yielded do not even outdo the inflation rate. This is because they work on age-old mediator-enabled and thus mediator-heavy financial models. Thus, a huge chunk of potential earnings for an investor, i.e. a lender, to be lost in commission. 

P2P (Peer-to-Peer) lending is the answer to all the problems with the traditional investment avenues and thus is regarded as a new-age investment avenue. 

What makes P2P investment so lucrative?

P2P investment is an answer to challenges the traditional banking financial model is inherent with. A P2P platform like LenDenClub convenes investors who want to earn competitive returns with creditworthy borrowers who want instant loans with convenience. Thus, by disintermediating the financial mechanism, a P2P platform offers higher rates of interest to investors. LenDenClub, the biggest P2P Lending Platform in India, has delivered a consistent portfolio of 10 to 12% p.a.* returns since 2017.

Besides, being a FinTech, LenDenClub makes it easier for investors to go about investing through its fully digital platform. One can either download the LenDenClub app from the Apple AppStore or Google PlayStore or log on to the LenDenClub website, and then create an account and start investing. 

One can even take a look at the dashboard and portfolio performance with few clicks, and track the growth of their wealth. 

FMPP®, an all-rounded investment solution

FMPP®, the Fractional Matchmaking Peer-to-Peer Plan from LenDenClub, has been designed such that it gives returns higher than many traditional fixed-income asset classes. It also overcomes the shortcomings of other P2P investment plans.

Starting with an investment amount as low as ₹10,000, FMPP® 100% investors have earned between 10 to 12% p.a. based on returns earned in Sep., Oct., and Nov. 2022. The returns’ range comes from the historical performance of the platform and its AI- and ML-enabled nature. The ty comes from the principle of hyper-diversification, which is unique to FMPP®. 

All in all, FMPP®’s unique algorithm has been devised such that nearly everyone earns the propositional returns rate–a phenomenon called platform-level uniformity; this redefines P2P investment. 

FMPP®, owing to its well-balanced nature, i.e. offering inflation-beating returns and being non-market-linked, also competes against share market investments, mutual funds, etc. Whether portfolio diversification or a one-point investment solution, FMPP® excels in both.

Things that make FMPP® unique

In devising FMPP®, LenDenClub has taken numerous factors into consideration. Things like non-market-link nature, compliance, inflation-beating returns proposition, and so forth are at the core of the investment plan. Thus, FMPP® offers the following features.

  1. Returns: Stability as a component makes an investment avenue worry-free. P2P, not being prone to market volatility, is inherently not subject to market risks. In FMPP®, owing to its unique hyper-diversification principle, the funds are allocated as low as ₹1 per borrower. This means that the returns are risk-mitigated, giving Marginalised NPA. Thus, LenDenClub uniquely offers Systematic Risk Mitigation with FMPP®.
  2. Auto-investment: Convenience is at the core of new-age investment avenues. LenDenClub, a leader in India’s P2P lending sector and a prominent player in the FinTech sphere, has ensured utmost convenience to its investors with FMPP®. The on-boarding of borrowers on the platform, selection of borrowers for allocation of funds, hyper-diversification of funds for maintaining platform-level uniformity in returns, etc are some features carried out automatically by the platform. This makes investing in FMPP® hassle-free. One can even turn auto-renewal on or off for a particular FMPP® from the dashboard.Conclusion

With features like returns that are and high, unparalleled measures of reducing NPA, tech-enabled nature, and high yield at maturity, FMPP® poses not only as a strong contender against traditional fixed-income asset classes but also as a great alternative investment avenue.

On top of that, online marketplaces like LenDenClub further simplify the process for investors. Let us see how –

  • A family of more than 2 million people
  • AI-powered Auto investment
  • Allows diversification and reduces risk
  • Screens borrower’s profile through 200+ data points to reduce the risk of default.
  • 100% investors have earned between 10 to 12% p.a. based on returns earned in Sep., Oct., and Nov. 2022.
  • Market risk-free returns
  • Safe and Secure transactions using the ESCROW mechanism.

Hop on the bandwagon with 2 million+ investors. Register now!

*On platform level

*P2P investment is subject to risks. And investment decisions taken by a lender on the basis of this information are at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower.

LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping investors diversify their investments beyond traditional investment instruments ever since.



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The Reserve Bank of India does not accept any responsibility for the correctness of any of the statements or representations made or opinions expressed by Innofin Solutions Private Limited, and does not provide any assurance for repayment of the loans lent through its platform.

LenDenClub is an Intermediary under the provisions of the Information Technology Act, 2000 and virtually connects lenders and borrowers through its electronic platform via the website and/or mobile app.

The lending transaction is purely between lenders and borrowers at their own discretion, and LenDenClub does not assure loan fulfilment and/or investment returns. Also, the information provided on the platform is verified or checked on the best efforts basis without guaranteeing any accuracy of the data/information verification. Any investment decision taken by a lender on the basis of this information is at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower, fully or partially. The risk is entirely on the lender. LenDenClub will not be responsible for the full or partial loss of the principal and/or interest of lenders’ investment amounts.


*P2P investment is subject to risks. And investment decisions taken by a lender on the basis of this information are at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower.

** Average value mentioned is the weighted average of returns received by investors

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