Inflation-beating returns or wealth-building, what should you aim at or for?

Aug 17, 2022

In this blog, we shall go through why ‘inflation-beating returns’ as an investment proposition should be used as a means and not an end in investing. Later on, we shall see why P2P investment should be one’s go-to investment avenue. Finally, we shall see why FMPP should be used for wealth-building and overall healthy financial planning in general.

Inflation-beating returns, an end and not a means of investing

Healthy financial management is part of each of our life goals. It can be a stepping stone for wealth-building or good practice in general. Availing oneself of loans only in dire needs, avoiding the use of credits as far as possible, having a good credit score and history, and so on are some practices that define healthy management of finances.

Wealth-building means having as many sources of income as possible; a considerable reservoir of finance at hand, either as liquid cash or total NAV, i.e. liquid cash + Asset Under Management (AUM). Apart from that, having savings and investments can be helpful in the short as well as long runs of financial management.

Long-term investments are aimed at rather ambitious goals, namely wealth-building. Inflation-beating or double-digit returns can be great as means-driven investing. Wealth-building and be great from the end-drive point of view.

Overcoming the fierce competition amongst financial institutions, new-age investment solutions like P2P investment posing as a strong contender, particularly because of their high returns-yielding potential. P2P investment has a higher potential of yielding returns due to it being aggregator-based instead of mediator-based. Hence, where bank-pooled investment avenues, like fixed deposits and recurring deposits, do not surpass the inflation rate, investments in P2P help someone earn inflation-outdoing returns with high net profits.

What does P2P investment have to offer?

As stated above, P2P investment offers inflation-beating returns, a proposition not commonly found in the investment market. LenDenClub is India’s leader in the P2P sector. It has consistently given returns of 10 to 12% p.a. for the past five years, along with low NPA. The range of double-digit returns is unparalleled and best-in-class.

LenDenClub has introduced FMPP,

the Fixed-Maturity Peer-to-Peer Plan. It has been devised to give Returns while keeping up the returns proposition. Thereby, one can earn 10 to 12% p.a. returns with unprecedented ty. LenDenClub’s unique algorithm enables hyper-diversification of funds, i.e. the funds are allocated as low as ₹1/borrower. This way, any NPA is evened out on a platform level, giving Marginalised NPA to individual investors through Systematic Risk Mitigation.

To conclude, FMPP offers platform-level uniformity in portfolio performance. The only trade-off with the plan is that one would have to go for a term of 1, 2, 3, 4, or 5 years, and the starting investment amount is ₹10,000. However, the maximum investment amount is ₹10 lakh, but one can invest up to ₹50 lakh after submitting a net-worth certificate.

FMPP, a purely investment-directed plan

Investments with values lost to inflation, market un ties, low yields, etc do not stand true to their purpose. Investing is also oft-marketed with other additives like insurances, albeit with diminished returns values.

FMPP is a purely investment-orientated asset class and gives a higher yield and stability. Hence, it is undoubtedly the best choice in terms of investment. People who prefer term assurance plans purely for insurance purposes can combine FMPP for investment purposes.

How can FMPP help in wealth-building?

FMPP is the most well-balanced investment avenue. It offers Returns in an inflation-outpacing range, i.e. 10 to 12% p.a. Since FMPP offers the best of market-linked and non-market-linked asset classes, one can strategically use it for portfolio diversification. (On a side note, FMPP is also RBI-regulated, and LenDenClub is an RBI-registered NBFC-P2P)

The well-balanced nature of FMPP also makes it the choicest of all investment avenues. Hence, even though it is an alternative investment avenue, it can be opted for as a standalone investment option.

In both cases, i.e., as a means of portfolio diversification or a one-size-fits-all investment avenue, FMPP can be helpful in portfolio management, to say the least, and wealth building, to say the most.

Wealth-building and other financial planning

Since FMPP can be used for wealth-building, one can definitely use it for healthy financial management; after all, built-up wealth can be helpful for planned big purchases, early retirement, and whatnot.

Since FMPP offers the best interest rate for all fixed-maturity, fixed-term investment avenues, one can use it to plan children’s education, marriage, post-retirement plans, and so forth.

To conclude

FMPP is great for healthy financial management, portfolio diversification as a well-balanced investment avenue, portfolio management as a standalone investment avenue, wealth-building, and so on due to its high and return-yielding nature. FMPP is also a purely investment-orientated plan for serious investments. Start Today!

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