What is FMPP?

Aug 4, 2022

What is FMPP?

Investing is a parallel to earnings. No doubt, it is regarded as an alternative means of earning income. Some of the greatest tycoons of all time have made their way up through investments. Thus, investments can be a means of side income for some and a source of growing wealth for others. 

When it comes to investments, getting a single point of solution that offers the best of every asset class is virtually impossible to find. Many fixed-income investment avenues are the safest, namely Fixed Deposits and Recurring Deposits, are the safest to choose but don’t offer inflation-outdoing returns. Market-linked asset classes can be the most rewarding but are subject to market whims. And cryptocurrencies seem like a new-age promise, but being unregulated, their equal shares of uncertainties.

All these investment avenues pose numerous shortcomings, given the inherent flaws in the working models. The only new-age solution that can potentially offer considerable returns with safety is P2P investments. P2p FMPP, an offshoot of P2P investment, is even more promising. 

Before we delve into FMPP, let us take a closer look at the working model of P2P investment. 

A gist on P2P investment

P2P investment or P2P lending, sometimessome times also called One-to-One or One-on-One lending or investment, is direct lending to borrowers. This goes against the traditional banking model. In the banking financial model, the financial institutions or mediators work as facilitators and take away a huge chunk of the investors’ earnings, P2P platforms like LenDenClub, whereas, provide the same facilitation, albeit for a minuscule fee. This way, an investor earns good returns for the same investment amount and period as with many traditional fixed-asset investments.

FMPP in detail

Now, getting back to the topic ‘What is FMPP?’, FMPP, which stands for Fixed-Maturity Peer-to-Peer Plan, is an investment plan from LenDenClub that has been devised by considering every shortcoming of other asset classes. FMPP thus uniquely offers the following benefits.

  • Higher returns than many traditional asset classes

FMPP offers returns of up to 10 to 12% p.a.* with ty. The platform has had a consistent portfolio of 10 to 12% p.a.# returns for the past five years. And with FMPP, it ensures that of investors meet the proposition. LenDenClub uniquely deploys the hyper-diversification principle in the FMPP investment plan. The funds are therefore allocated as low as ₹1 per borrower. This way, individual investors get Marginalised NPA–a phenomenon called Systematic Risk Mitigation.

The range of inflation-outpacing returns means you get what you aim for with investments.

  • High returns

What makes the returns proposition so lucrative? Stability, doesn’t it? High returns with stability may seem like a far-fetched idea. However, with FMPP, it is a dream come true. 

FMPP gives you returns that are . The stability of returns with FMPP comes from the non-market-linked nature of the investment instrument. LenDenClub can, therefore, offer ty with its proposition of returns of up to 10 to 12% p.a.*

P2P investment is subject to repayments from individual borrowers. Hence, with Systematic Risk Mitigation through Hyper-Diversification, LenDenClub has added a dimension of safety and stability with its FMPP investment plan. 

  • A regulated and compliant platform

Cryptocurrencies pose a strong contender against traditional investment avenues. However, due to the unregulated nature of the investment instrument, the safety of the investment funds is questionable. Cryptocurrencies also have ups and downs; after all, it is based on the demand and supply principle of economics. 

P2P lending is a fully RBI-regulated investment instrument. LenDenClub is an RBI-registered NBFC-P2P and escrow-compliant. An investor’s funds are managed by a trustee in an escrow account, a unit detached from the platform. Thus, the investments are safe as per an RBI mandate.

  • Al- and ML-enabled platform

Some investment avenues need keeping detailed track of the market intricacies. Several factors affect the market and have an effect on such volatility-prone investment instruments. Needless to say, numerous such factors go unnoticed, compromising the investment funds. 

Even in P2P lending, investing in worthy borrowers can be tricky; in other P2P investment plans, higher rates of return are inversely proportional to creditworthiness; in other words, the riskier the profile of a borrower is, the higher the returns an investor could earn; on the flip side, there is a high possibility of an investor losing an entire investment amount. LenDenClub, however, ensures on-boarding only Credit Bureau-verified borrowers who are further screened over 200+ verification points for further establishing their creditworthiness. Besides, the entire process is fully automated. LenDenClub, with its FMPP investment plan, also ensures auto-selection of borrowers for a hassle-free and worry-free investment experience.

Where does the proposition of 10 to 12% p.a. come from?

LenDenClub is India’s leader in the P2P lending sector. It has been delivering returns of 10 to 12% p.a.# consistently for the past five years. However, with the previous plans, there was a great disparity in returns yielded between investors. Hence, with FMPP, LenDenClub has vouched to offer platform-level uniformity in delivering returns.

How does one know whether the funds are growing or not?

When an investor starts an FMPP investment plan from the LenDenClub website or app, hhe or she can see an estimate of the returns they can earn upon maturity. Besides, the dashboard also shows the total amount the investment has grown to until that moment. This way, one can track the growth of their investment funds.

Conclusion

FMPP is the new-age solution for investment, yielding returns that are not only high but also . FMPP also brings technological convenience for hassle-free investing.

*P2P investment is subject to risks. And investment decisions taken by a lender on the basis of this information are at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower.

#On platform level.

Related post

Leave A Comment