7 Reasons why you should consider P2P Lending to Diversify your Portfolio

Aug 8, 2022

To be financially judicious, it is crucial to invest a part of your earnings regularly. Now, it is easy to get lost in a sea of different investment products and options. In case you are looking for an exciting and profitable mode of investment, peer-to-peer lending is the right option for you.

Peer-to-peer or P2P lending allows a direct connection between potential investors and borrowers over a digital platform. As an investor, you can create sound investment opportunities on a trusted online platform like LenDenClub as a part of their FMPP product. Borrowers can directly apply for loans from this pool and you can get a great return on your investment after a fixed period. Here are some of the top reasons why P2P investment is the key to a bright future

7 reasons why you should consider Peer to peer lending for portfolio diversification

  • A new-age Investment Solution:

As an investor you always face the dilemma of investing in a lot of options available. While some offer low returns, others can carry a high amount of risk. What if there was a win-win solution?

LenDenClub’s new-age investment product does exactly that! It’s a win-win for investors as it provides returns of up to 10 to 12% p.a.* while allowing you to mitigate credit risks at the tip of your fingers. Their hyper-diversification protocol allows you to distribute your investments among a very diverse pool of borrowers which enhances your returns while at the same time reducing the chances of losses! You can start off with your desired amounts that can go as high as up to ₹50,00,000/-. It’s always better to start off with a decent amount so that their risk mitigation strategies can be successfully implemented on your investments – automatically of course!

  • Compounded returns are always a plus:

When choosing from the many investment opportunities available in the market, it is important to think from a long-term perspective. With peer-to-peer lending schemes, you get profitable compounded returns. This has a two-fold advantage. Firstly, it can help you in accumulating wealth by means of forced saving.

Secondly, compounded interests provided by reliable P2P products from top-rated platforms like LenDenClub ensure that you get a considerable amount of returns after a time interval. The compounded interests help in increasing your initial investment base and after a point of time, you can re-invest these gains if you want.

  • Easy way to diversify your portfolio

The key to mastering investment is to always diversify your portfolio. P2P helps in adding a dynamic and high-return element to your overall portfolio. Diversification ensures that all your money does not get stuck in a single outlet. This, in turn, reduces the risk your funds face from any market volatility.

Diversification is also a convenient way of experimenting with new products in the market. A lot of investment options with low brand awareness often escape your attention and you miss out on a great opportunity of gaining long-term wealth. Diversifying with p2P lending can help you expand your understanding of the investment world, in general. Further, being a relatively safe product, LenDenClub’s FMPP investment option provides a stabilizing factor to your portfolio.

  • Mitigation of market-related risk

If you are jittery about market fluctuations, P2P investment is the perfect route for you to take. Since it deals with the exchange of money between the lender and borrower, it works on a pre-specified rate of interest. Hence, the impact of market-related risk on your overall portfolio is immediately mitigated.

In particular, if you are investing in the P2P lending option from LenDenClub, the platform implements sophisticated risk mitigation strategies using AI & ML techniques. Such strategies ensure that borrowers go through credit verification process that takes into account over 200 different data points. Hence, you do not have to worry about losing your money to borrower defaults.

  • Invest at the snap of your fingers

With the advent of digital investing, everything is available at the click of a few buttons. Peer-to-peer lending is no different. Gone are the days when you had to go through stacks of paperwork and days of tedious procedures just to start investing. P2P lending primarily happens through digitally equipped online intermediaries like LenDenClub.

All you ought to do is Register – Select Your Desired Time-Frame and – Invest. The creation of FMPPs is near instant leaving behind all the hassles that traditional investment options could give you!

  • Better returns compared to market standards

Tired of hearing the same age-old return figures on your investment for the traditional options? P2P lending gives you a better than average return on your money as compared to market standards. Products like FMPP from LenDenClub facilitate hyper-diversification of investments. This means your invested amount can be lent to multiple borrowers that could go as low as 1 rupee. Ideally, this allows multiple lenders to invest in a single borrower with each contributing some amount in the pool. Such risk-mitigation strategies enable lenders to lend in a highly secure environment.

Hence, you get better returns than what your money does lying idle in your savings account. Further, there are no intermediary charges at the platform’s end. This gives you higher returns than traditional investment opportunities available in the market.

  • Invest according to your risk appetite

A lot of investment opportunities often do not suit interested investors due to their high-risk exposure. With P2P lending, you always stay on top of your investments with LenDenClub’s intuitive dashboard. Depending on your risk appetite, you can start slow by investing small sums. Once you get an increased understanding of the product and its workings, you can multiply your investment. This flexibility can help you invest freely.

Why should you invest in the FMPP offering of LenDenClub?

LenDenClub is one of the leading peer-to-peer lending platforms in India. The Fixed-Maturity Peer to Peer or FMPP plan is one of the most profitable venues for modern-day investment. It offers returns of up to 10 to 12% p.a.* It also offers flexible tenures between one and five years, P2P helps in getting excellent returns on your money.

LenDenClub also offers systematic risk mitigation, keeping your money secure. It is the most prominent P2P platform you can trust your money with. Currently, it has over 2 million registered investing parties. Further, LenDenClub has 3.5 million verified borrowers.

Thus, there is no better alternative to peer-to-peer lending if you want to accrue wealth in the long run. If you are gearing up for P2P lending, LenDenClub’s FMPP lending can be the best partner for your successful investment future. Come, join the LenDenClub family today!

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.
  • Provides returns of up to 10 to 12% p.a.*
  • Market-risk free returns
  • Safe and Secure transactions using the ESCROW mechanism.

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

Related post

Leave A Comment