Investing into Innovative assets during uncertain time
Jun 24,2020 Investing, Peer to Peer Lending, Investment
Uncertainty is an investor's worst enemy! The spread of corona virus disease COVID-19 is one of the biggest threats to the global economy and financial markets. And this has triggered panic across the world and shaken the confidence of investors. This is certainly a time where it increases the mental stress within the investors' minds with enhanced doubts regarding the longevity of equity assets creeping in.
Market instability often happens and it's up to the investors to make room for it in their portfolios. Certain precautions should be taken to buffer against such unexpected disruptions. How to do so? Diversify your portfolio, search for new investment opportunities, and stay cool even during nail biting times.
Political events, economic situation and natural adversities all affect the markets in one way or another. Some investors choose to act promptly and shift their assets from one place to another, sometimes even taking a slight hit on principal investment. There are others too who choose to be more conventional and accept this instability as the price they must pay for earning money, more because they don't know what to do in those circumstances. A financial advisors and proactive steps to diversify the investments do help in such situations.
Diversification is the ultimate key for securing your assets in uneasy times. You should diversify across different asset classes and re-balance your instruments periodically to maintain your risk profile. Diversifying your investments is something you can control in the midst of uncertainty. You get to choose which instruments to purchase and how much money you are comfortable allocating into each asset class matching your risk reward expectations and more fully at time to protect your investments. The instruments are numerous too!
Mutual Funds, Gold, Real Estate and other innovative asset especially like P2P lendings are some more worthy assets that can be looked upon by ambitious investors. Ideally, an investment of some sort in all of these assets would go a long way in saving you from future groundbreaking policies.
Ideal time for venturing into innovative assets
There's always room for improvement! If you think your portfolio is already well - balanced, good for you! But that shouldn't stop you from looking for new asset classes. There is an advantage to routinely looking at all the available options and seeing how they fit your portfolio because over time, different asset classes produce different results. To maintain your ideal risk profile, an investment portfolio needs periodic calibration / re-balancing.
The inception of Peer to Peer (P2P) lending platforms came at a time when there was increased financial uncertainty in the global market. The goal was quite simple, and only those who had the foresight regarding the country's economy in the long term appreciated the option of a technology backed innovative asset like P2P lendings. With automation on the agenda of every sector, P2P lending ensured that finance wasn't going to be left behind.
Why it may be the right time to invest through P2P Lending Platform?
Majority of investment instruments are cyclical whereas fixed income instruments are always on linear path and give a steady return over a period of time. P2P lending is one of those linear instruments. If you look at last one and a half year, returns across certain asset classes - Stocks, MF, Gold, or Real Estate - you will see they have given returns between 5% and 12%. And so, if P2P is giving 15-20%, it can be considered a good option compared to others.
Peer to Peer Lending involves lending to businesses or individuals through an online platform, alongside other private investors. There are risks like risk of default, delayed repayments etc. Such risk management depend upon the ability, experience and capability of the platform and its management / team. One should do his homework to find the good quality P2P lending platform, which is being run by the team of capable finance professionals under the managements of experienced bankers / senior finance management and Board of directors, platforms who are having their well defined and time tested credit policies and algorithm to select the right quality borrowers where the investor can expect higher risk adjusted returns. One such name, which can be trusted for investing is www.omlp2p.com, Investment returns for such good quality P2P lending platforms have been really attractive - ranging anywhere between 15-20% annually (post delinquencies).
P2P lending platforms are being governed by RBI (Reserve Bank of India)master guidelines. before investment one should confirm whether the platform is registered with RBI and they are RBI guidelines compliant. Names like www.omlp2p.com, may be trusted.
The process of investment is comparatively simple with no middlemen. You can register online using your desktop and start investing within a few minutes. You then create your portfolio by short listing options from a list of borrowers. The investment decisions are data backed which are provided by the platform & the collections as well as payments are taken care of by the P2P lending company.
To summarize, Peer-to-Peer (P2P) lending has potential proven value propositions offered over the last decade which are now fascinating Indian masses. It has the ability to create immense return for the lenders (investors) especially in a situation when Interest rate scenario (banking interest on Fixed deposit) is continuously falling and come to less than 5%.
The author is marketing head (Investors) of www.omlp2p.com. The article written by him is in his personal capacity and educational in nature. All the views are his personal views. www.omlp2p.com, the peer to peer lending platform has placed (promoted) the articles to benefit the general borrowers and lenders. You may write to author for your quarries at email@example.com referring the article name and your details.
www.omlp2p.com is one of the India's RBI (Reserve Bank of India) registered NBFC-P2P, providing technology enabled e-commerce platform to it's Lenders and Borrowers to avail their loan at a highly competitive Rate of Interest, in a hassle free manner without much of documents; at the same time it provides its Lenders Higher return on their capital by providing opportunities to lend to good quality, well assessed borrowers.