Investment

P2P investment is the smart way to earn double-digit returns

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Investments are the backbone and key to a financially stable future. However, in India, profitable investments are synonymous with the stock market and its ever-risky finance options. Investors often look for investment options that can yield ‘double-digit returns’ and multiply their principal amount by a hefty margin. Until now, equity was the primary choice worthy enough to offer double-digit returns. With the introduction and development of technologically backed P2P lending platforms, investors have found a way to multiply their wealth in a risk-free fashion.

The common myth with Equity

Equity bases its success on a common investment myth: the higher the risk, the higher the returns. However, it also requires knowledge of the technicality and the factors which affect its price determination. Investors have to constantly monitor the underlying asset (financial element on which the stock’s price is based) and identify the right time to buy or sell.

The decision that culminates in the buying and selling of stock also includes complex techniques such as trade analysis and financial statement analysis. A minor mistake in the analysis of the equity-based commodity can lead to huge losses, which is considered the norm in this form of investment.

The smarter way to invest

Technological advancement backed by brilliant minds and their creative ideas has developed innovative ways for investors to earn ‘double-digit returns’. One such creative idea which has transformed the investment market is the evolution of P2P lending platforms. This method of investment offers multiple benefits to the investor:

  1. Earn high ROI
    An investor can invest a variable sum of money of their choice in such platforms and lend to potential borrowers looking for a loan through the platform. When the borrowers seek a loan from the platform, interest is applicable on the borrowed amount as a normal bank loan. The interest paid by the borrowers is directly credited on a monthly basis in the bank account of the investors, thereby rewarding a quick return on investment.
  2. Portfolio Diversification
    The reason why the P2P lending and borrowing platforms are gaining the interest of the investors is due to their diversification potential and a minimized risk of losses. Investors have an option to choose how they want to diversify or leave it to the automate diversification option to reduce the effect of a default on the collective returns of an investor’s portfolio.
  3. Requires minimal investment knowledge
    The P2P marketplace has provided a way for investors, with or without investing knowledge, to be a professional investor and earn maximum returns on their investments. These platforms alleviate the complexity and risk factor involved while investing in equities and also provide a better return on the investments.

The revolution in P2P lending

RupeeCircle is one such leading P2P marketplace that provides investors with an option to invest as little as Rs. 5000 to get an attractive ROI. Investing a minimum of Rs. 10,000 will allow for diversification among multiple borrowers. This investment option is insured to offer a negligible risk of default, with the investors earning returns as high as 36%, and an average return of 24% on investment. If you want to invest without having to spend much time monitoring your investments, a P2P marketplace is an ideal, smarter, and safer way to invest.

Sumeet is the lead content writer at RupeeCircle, where he articulates with innovative storytelling. When he's not writing or editing content for RupeeCircle's blog, he's a stand up comedian and a full time entertainer. Connect with him on Facebook and Instagram!

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