Why Investing is Important & Where to Invest?

Why is investing important?

Investing is an important part of your financial planning. It allows you to maximise your returns, create wealth. Investing can be done in various ways, ranging from traditional stocks and bonds to more modern options such as peer-to-peer lending and cryptocurrency trading. 

It is an important step you can take to secure your financial future as it not only can help you build wealth over time, but it can also provide you with a steady stream of passive income.  

Inflation's effect on your money?

Inflation is defined as an increase in the price of goods and services. It reduces the value of your money and purchasing power. When the inflation rate rises, you buy fewer products with the same amount of money. You have no control over the rate of inflation. To remain ahead of inflation, you need more money to buy the number of products you want to buy in the future with the money you have now. Nevertheless, money does not grow on its own. If your money is to grow, it must generate returns. You must invest to earn profits.

Where should you invest your money?

There are several different investment options available that you can choose from. Investing in the stock market can be a daunting task. With the volatility in the market, it is difficult to know when to invest and how much to invest. For those looking for a safe investing option, peer-to-peer (P2P) lending services in India offer an attractive alternative and are RBI certified. P2P lending services provide investors with an opportunity to lend money directly to borrowers without having to go through any intermediaries or financial institutions. This helps investors get higher returns than traditional investments while still keeping their money safe and secure. Moreover, P2P lending services also provide borrowers with access to funds at competitive interest rates, allowing them to grow their businesses and achieve their financial goals.

Here are some popular P2P lending platforms in India that you can consider:

🔵 IndiaP2P: It is India's Most Exciting Investment Product for P2P Lending where all transactions are made via RBI-mandated bank escrows. You can earn up to 18% p.a. by investing in retail loans curated by IndiaP2P.

🔵 LendingClub: It's one of the popular lending platforms in India, where you can lend money to borrowers and earn returns on the interest charged.

🔵 Faircent: Faircent is another P2P lending platform, providing borrowers with access to affordable credit and investors with an opportunity to earn higher returns.

🔵 i2iFunding: i2iFunding is another popular P2P lending platform in India, which allows investors to lend money to creditworthy borrowers and earn attractive returns.

🔵 Rupeecircle: Rupeecircle is a platform that allows investors to lend money to borrowers in exchange for attractive returns.

🔵 LenDenClub: LenDenClub is a popular P2P lending platform in India that connects investors with creditworthy borrowers, providing both parties with an opportunity to benefit.

You can also check our blog Navigating the Indian P2P Landscape: Best P2P Investment Platforms

Reasons why IndiaP2P is the Best Online P2P Lending Platform in India.

Investing in India’s top P2P lending platform - IndiaP2P could be one of the smartest decisions you make. Not only do you have the benefit of working with a trusted resource with years of experience, but you also can maximize your return and minimize your risk.

Here's why:

🔵 Easy Onboarding: This entire process only takes a few minutes. No physical paper submission is required. You will have to complete a quick online KYC verification after that your unique virtual escrow account will be created into which you can deposit funds for investing in IndiaP2P products.

🔵 Very low risk: Your investment under the IndiaP2P investment plan is deployed into fractionalized i.e. parts of loans sourced from individuals with successful prior borrowing track records and/or good credit scores. Moreover, 95% of investment goes towards funding loans to businesses run by women in India having high CIBIL scores.

🔵 High returns: Direct investing into retail loans i.e. no middlemen, where you can earn up to 18 interest p.a.

🔵 No volatility: With IndiaP2P investments are not subject to market movements like stocks, mutual funds, crypto, currency or gold, etc, i.e. The returns are fixed and predictable here.

🔵 Monthly returns: You can choose to earn monthly interest income or re-invest them for compounding. The IndiaP2P Growth Plan puts the power of compounding to work for you by re-investing your monthly interest earnings into new loans.

🔵 Accessible:​​ IndiaP2P lending is accessible to all, including investors with limited finances, and requires investment as low as Rs.5000 to start.

Is my money safe in P2P Lending Platforms?

All P2P lending platforms come under the purview of RBI regulations. All P2P lending platforms are required to register for an NBFC-P2P license to provide P2P lending services.

The RBI has listed certain guidelines and regulations to ensure the safety of both the lenders and borrowers on the P2P lending platforms.

Important Points to Check as an Investor:

As an investor in P2P lending, there are several important points to check before investing your money. Here are some key considerations:

🔵 Platform reputation and track record: Do your proper research and examine the platform in which you plan on investing. Examine the platform's credibility and track record by reading reviews, ratings, and testimonies from other investors.

🔵 Risk assessment and creditworthiness of borrowers: Analyse the platform's risk assessment and credibility procedures to learn how borrowers are reviewed and approved. Check if the platform has strong checks and balances in place to prevent default risks.

🔵 Loan types and terms: Check the lending types and terms provided by the site. Search for loans that match your investing goals and risk tolerance. Pay close attention to loan terms such as interest rates, return time, and loan repayment penalties.

🔵 Platform fees and charges: Learn the fee structure of the platform, including any charges for investing, withdrawing, or other transactions. After removing all fees and charges, compute the net investment profit.

🔵 Regulatory compliance and investor protection: Verify that the platform is registered with the appropriate regulatory authorities and that it complies with all applicable regulations. Examine the platform's investor protection procedures and guidelines.

🔵 Diversification and portfolio management: Diversify your portfolio by investing in loans from a variety of borrowers, loan kinds, and risk levels. Consider using the platform's portfolio management features to improve and optimise your investment approach.

By considering these key points, you can make informed decisions and maximise your chances of success as a P2P lending investor.

Conclusion:

Investing is important in order to stay ahead of inflation and secure your future. There are various ways to invest, such as traditional stocks and bonds, or more modern options such as peer-to-peer lending or cryptocurrency trading. P2P lending services in India offer an attractive alternative and are RBI certified, providing investors with an opportunity to earn higher returns.