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Coronavirus Stock Market Crash: Choose P2P lending

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Since the Coronavirus, also known as the COVID-19, was first identified at the end of December in Wuhan, China, it has infected more than 2,18,000 people, resulting in over 8,800 deaths worldwide. The deadly virus poses a threat to people and has also destroyed economies of the countries along the way. This chain of events has given way to an inevitable global recession.

The number of coronavirus cases identified in India has resulted in the collapse of the Indian stock market, eroding investor wealth worth Rs 10.9 trillion. With experts believing that the current market scenario could worsen in the near future, it is imperative to identify feasible ways to invest, increase wealth and ensure a burden-free financial future.

Current scenario for Indian stock market investors

The recent global economic situation fueled by the COVID-19 outbreak along with the crude oil price crash has forced the Indian stock market to go bearish (a bear market is when the stock market has crashed more than 20% in valuation).

P2P lending: a safe investment choice

The current volatile stock market has investors seeking safer alternatives such as P2P lending platforms to earn systematic monthly profits and avoid the negative effects of the stock market crash on their financial portfolio. The reasons that make P2P lending the best investment choice for investors include:

Not Market-linked: Peer-to-peer investments have no relationship with external market factors. P2P lending follows a periodic investment approach where investors can lend their money to borrowers, and not worry about market trends. Thus, investors will not lose their money based on current market circumstances but earn profits through interest as borrowers continue to repay the loaned amount.

Systemic returns: P2P lending provides systematic returns through high-interest yielding loans given to borrowers. Investors can choose the type of borrowers to lend their money and the rate of interest based on the repayment timeline. Once the loan is approved, the interest gets directly credited into the investor’s account on a monthly basis.

No volatility: P2P lending is considered as the safest investment option because of its ability to eliminate volatility from the investment structure. As it doesn’t rely on market factors to drive its growth, investors are assured a transparent and safer investment process at a time where every other investment alternative is at the peak of volatility.

Simple investment process: P2P lending integrates advanced technologies with smart software to offer a simple investment process where, unlike the stock market, investors don’t have to constantly monitor their investments. With P2P lending, they can invest in a matter of minutes: anywhere and anytime.

The uncertainty of the pandemic has reduced the confidence of Indian stock market investors tremendously. With the stock market losing profit potential, P2P lending platforms have become ‘Safe Havens’ for investors to limit their exposure to investment losses. One such leading P2P lending platform is RupeeCircle. It allows investors to gain the highest returns while mitigating market volatility and fluctuations. For more information on achieving financial stability through P2P investments, visit RupeeCircle or download the RupeeCircle app on Google Play Store.

This article is authored by Nikhil Prabhakar, Head of Marketing & Products at RupeeCircle. He is an alumnus of IIM Ahmedabad & ESCP Paris and has 10+ years of work experience across multiple industries like Fintech, IT & Energy. He is an active investor across equity, derivatives, debt and real estate.

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