With the emergence of the P2P lending, lenders and borrowers have found a convenient way of lending and borrowing. The lending platforms have created a new and good investment opportunity for those with secured income and those willing to invest and double the money. The P2P lending comes as a good alternative income source that works well for investors who will work out the risks involved and understand the workings of this unique platform. LenDenClub and other such platforms offer excellent opportunities where money can be doubled easily by investing in several loans.
Comparing investment options
There are several investment options that you can opt for. Every option comes with its own risks and benefits and therefore, depending on the preferences, one can choose the best investment option. There are several factors that need to be compared before choosing the option that suits investors.
Let us check how some of them work:
1. Returns on the saving accounts are famous for their notoriously low-interest rates. The returns are as low as 1.1%. Naturally, investors will think of other opportunities as well.
2. The stock market is a good option and can give returns up to 5%, but there are involved risks of up and down of the markets. In addition, any company you invest in may bust suddenly, and so there is a lot of risk here.
3. Investing in property was attractive till a few years back, but now with the economic slowdown, there are no takers. There is a dip in sales, and the prices of real estate are predicted to fall.
4. Luxury goods are also investments of a certain type as it is a tangible asset. Investing in gold is on the rise as the prices have been increasing steadily. However, prices may fall, and uncertainty prevails.
5. P2P platform is another attractive investment opportunity, which is fairly new and opening up to a large part of the world. It can help borrowers to borrow money online, and the lenders get a fat interest rate on the loan they lend to the borrower.
No investment option comes without any risks. The level of risks can be minimum or maximum. Peer to Peer lending comes with the moderate risk. The higher the risk, the higher is the rate of interest and profit. It depends on how you deal with loss and profits and how ready you are to risk your hard-earned money.