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P2P Lending Vs Stock Market

When it comes to investment of our hard-earned money, really challenging to decide which is the right financial asset to invest in? In order to derive better returns from our investments, we need to critically analyse and compare all the possible options available to us for investing and take a final decision, as to which one is the better option; matching our risk and liquidity requirements and at the same time provide us with higher returns too (yields).

Risk is one of the most important deciding factors when it comes to investing. Investing in stock markets may give us high returns in long run but it comes with significantly higher risk and lack of predictability for timing to liquidity. We all know market volatility can turn out to be a nightmare, it's difficult to analyse how long to wait to liquidate our investments in the stock market. The fear of losing your money can destroy the peace of your mind. Thus, stock market is not everyone's cup of tea, as it requires a lot of time, energy and patience. Due to this fear of volatility causing stress, several choose to avoid the stock market, to manage their risk and regular requirements of liquidity.

Peer to peer lending is here to provide you with some peace of mind and high returns too. On an average you can earn returns upto 36% p.a. Peer to peer (P2P) lending is rapidly emerging as a new innovative and lucrative alternate asset class for investment. With peer to peer lending you can mitigate your risk and upgrade your portfolio. Although when investing in peer to peer there is a risk of borrower's credit, you can easily spread your investment into a basket of borrowers to minimize your risk and maximize your returns.

Stocks are generally viable for mid- long term so that you get more time to cover up with the losses that may incur. P2P lending tenure varies between 6 months to 36 months. If you need funds in a shorter span and do not want to lock your money for a long tenure, P2P lending turns out to be a better investment choice. With P2P lending platform, you can decide you own risk adjusted returns by lending to high quality p2p platform verified borrowers.

Which one will you pick?

Having said this, what investment option you pick is eventually dependent on what kind of an investor are you. If you are willing to invest huge amount of time and research into your portfolio and have the ability to pinpoint trends in the stock market, the stock market is for you.

However, you'd rather make awesome returns upto 36% which can be higher than stock market. Investing in P2P is a seamless and hassle-free process. Right from registering to investing, everything is just a click away. It allows one to pick borrowers at a quick glance and invest happily.

Don't you think it's a perfect time to invest in peer to peer lending. Invest at and let your money work hard and earn for you.


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