Investors all across the world are starting to consider P2P Lending as a must approach opportunity for high and safe returns. Also, it’s a must-add in the investment portfolio these days. Considering its numerous advantages, here are some reasons why it must be a consistent investment choice.
P2P lending is the only high return instrument to fetch monthly cash flows with interest payments. Unlike other/ traditional investing instruments, cash flow is not tied to maturity and starts immediately after the investment. Start small by investing a small sum of amount, depending on your risk yearning, and then allow your loan portfolio to grow steadily and profitably.
Simplicity and full control
P2P investments are fairly simple to operate with requiring only periodic portfolio management checks as the P2P platform takes care of all other, right from repayment collection to borrower sourcing. The investor gets full autonomy in deciding the structure of his/her portfolio.
Diversify – To spread risk, keep a good mix!
Spreading your investment across a large number of borrower profiles from a different location, gender, occupation etc helps in higher diversity and higher spreading of risk in your portfolio. Auto-Invest is an automated feature provided by LenDenClub which assists the investor’s investment defined by parameters pre-set by the investor. This assists the investors to build a diversified portfolio faster and more efficiently.
Strongest Credit System
P2P lending platform come from a large demographic pool, primarily consisting of salaried individuals. Each platform makes sure that the borrowers go through a stringent screening Mechanism. At LenDenClub, each borrower goes through a 5 step LenDen screening mechanism ensuring lesser borrower defaults and easy tracing of borrowers if at all he/she defaults.
Rolling the profits back on the platform for further reinvestment ensures a compounding return on investment, making it a lucrative option for investors. Not only that, but it also increases returns by up to 10% p.a. Make sure you reinvest your returns, at least partially, to maximise your return on investment. As an investor, you just see the compounding effect while no need to get into the hustle like other instruments, where you have to keep reinvesting from time to time.
P2P is long-lived
Undoubtedly, there is never going to be a time that people stop taking loans. Unlike other asset classes – such as equity and mutual funds, P2P Lending is far less volatile and doesn’t involve you having to keep tabs on your portfolio every hour. With its high returns and safety, you could always earn solid profits at a consistent rate.Conclusively and unquestionably, P2P lending suits every investment necessity. Why don’t you understand more about Peer to Peer Lending and make the best investment decision for yourself, click here