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Regulated vs. Unregulated Investment Products (India)
As retail investors we have many investment options today, common ones such as stocks, MFs, rental income, etc., and newer ones such as P2P lending, angel investing, digital gold, etc.
However, not all products and companies selling those products are regulated i.e. do not have oversight of regulators such as the RBI and SEBI. While not all unregulated investment products are unsafe, they are more prone to fraud and losses.
Before you make an investment, check if the product and/or entity providing the product is regulated.
Regulators often explicitly ban financial advisors and registered brokers from recommending/selling unregulated assets until they come up with qualification criteria and rules for such investment assets and the companies that offer them. These regulatory safeguards are for investor protection.
IndiaP2P.com offers investment products composed of retail loans and is regulated by the RBI under the NBFC-P2P category.
Author: Neha Juneja
Impact of rising interest rates on your investments
Inflation has risen across the globe to become a pain point for policymakers who grapple with rising prices and faltering economic growth. Things seemingly turned worrisome when the Reserve Bank of India (RBI) raised the repo rate by 40 basis points on May 4 and again on June 6. With the growing interest rates, should investors like you need to worry? What should be your strategy towards investment during such times? Let’s find out. First, let us revisit the connection between inflation, interest rate, bond yields etc. Inflation and interest rates are directionally related, i.e. they tend to move along the same trend but with some lag. RBI and other central banks desire positive but manageable inflation rates. A negative inflation rate or deflation means degrowth in the economy because with rapidly decreasing prices, consumers tend to pause/postpone their spends leading to slowdown in economic activity. Fundamentally, the supply and demand...
What is the tax rate on my investment? - June 2022
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How does IndiaP2P offer such high returns with low risk?
How does IndiaP2P offer such high returns with low risk? IndiaP2P’s first-of-its-kind return-risk profile is the result of a unique yet large arbitrage opportunity that exists in the debt markets of emerging economies such as India. First, let’s recap how the equity and debt markets differ. While retail investors have had access to equity investments for long, debt has been gaining in popularity over the last decade. Read on… We all have come across the terms debt and equity quite often. And while we may use them in the same breath, they are actually quite different. Equity is the process of raising capital by selling a portion of shares from the business. For example, you receive a certain amount of capital infusion in your company in the form of equity. This means that you don't have to repay the amount later. However, the investor receives a portion of shares. Hence, they will receive profits in sync with their...
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