When we discuss investments, its usually stocks or mutual funds. However, with interest rates dipping below the accepted norms, everywhere, investors are now looking for newer and diverse investment options. The Indian individual investor is just waking up to the huge potential offered by P2P lending platforms like Monexo. Here is how returns from traditional investments compare to P2P lending.
Traditional Investment Options
Investment in shares requires acute research and a more strategic approach than is required for a P2P investment. Furthermore, the risk and returns (16-18%) on an investment in shares depends on a number of factors such as market conditions, company’s financial health, new product and services, etc. Alternatively, you can invest in bonds, as they pay a fixed rate of return. However, here also, it is a choice between a riskier bond with higher return or a government bond which offers a fixed minimal return. Apart from this, you can also invest in property or precious metals or other luxury items. Once again, the returns are either based on income yields or capital appreciation. Given the real-estate turmoil and falling gold prices in India, both these investment options have lost their erstwhile sheen.
How much can you earn with peer-to-peer lending?
Peer to peer lending offers a low-risk and high-rewards lending option for both professional and amateur investors. The best part about peer-to-peer lending is that you can diversify your investment through tools available on the P2P portal. A few peer-to- peer lending companies like Monexo have advanced features like auto-invest, that even let you automate your lending. An active P2P lending portfolio can earn you returns up to 30% if you make almost all the right choices (Read our post on how to maximize your P2P returns ). Even with a modest amount of involvement, peer-to-peer investment can give you up to 15-20% returns.
Want to invest in P2P? Sign-up now as a lender with Monexo to earn up to 30% returns.
