A lot of questions might surely pop up in your mind when you think of the best investment options available in India. It’s good to have these questions cross your mind! Only then your doubts will be clarified. You can surely rely on us and have us to guide you through it. We understand that each one of you wants to invest in the best investment option in India that will avail maximum returns with minimum risk involved. While, some of you must be investing to achieve financial security, whereas some to achieve investment plans and goals. Whatever is the reason, we have a fit solution for you!
Many investors are still seen opting for the same traditional investment options that may have worked in earlier times. But the falling interest regime that went on for the last few years, drove quite a few of these investors towards new-age options. Traditional investments were The first preference of the investors because they seemingly offered security and comfort. But they also have a major and often overlooked side effect; which is the negligible growth of wealth. So as you can see, while various traditional investment options may lock you in at a fixed interest rate, which is fully taxable, they can also be illiquid. Additionally, with inflation on the rise, the interest income you are left with post-inflation and taxes is negligible.
Here we have the best investment option suggestion for you – Peer-to-peer Lending
Investors all across the world are starting to consider P2P lending as a must approach an opportunity for high and safe returns. Also, it’s a must-add in the investment portfolio these days. P2P is making news in the alternative asset class with short term investments that have the potential to generate net average returns of up to 17%. An advanced form of crowd-funding based model, P2P lending platforms such as LenDenClub have been generating waves among the investor community with its ability to generate a top-of-the-line return in short durations.
Investors on the platform provide funding to the borrowers seeking to raise funds and in turn receive interest for such investment. P2P Lending is regulated by RBI in India, and at present, as per the regulations, an individual can invest maximum up to Rs. 50 lakhs through the P2P route. However, the unsecured loans can pose a default risk and that’s where diversification comes into the picture. Investors can invest in a pool of various borrowers with different risk-profiles that helps them bring down their overall default risk, eventually earning them better returns on their investment.
While for short-term goals, P2P lending is the best option available there is, an investor should consider a mix of various asset classes to generate wealth appreciation over long term prospects.