Warren Buffet only gave two rules for investing – No. 1 – “Never lose money” and – No. 2 – “Never forget the rule no. 1′. As we all know, no investment is without risk. These rules are the only way to avoid investing. Peer to peer lending and stock market are not recommended. Both investments involve risk and you should not lose your money.
When you invest, risk is your deciding factor. It is best to not put all your eggs into one basket because of the risks associated with investing. Let’s now weigh the risks associated with both traditional and modern investment options.
This is an objective comparison of the share market and P2P lending –
The share market is the most powerful financial instrument in the world. This is an example of market-linked investment. This dynamic market has helped many people make fortunes. Investors may be tempted to believe that market-linked investments will make them rich. It sounds like a great investment. Unfortunately, there are hidden caveats. It’s not all sunshine and rainbows.
You must have the ability to read financial statements and be able to invest in stock markets. You can be at the top one minute and then find yourself in the deadzone the next. This is how the stock market operates. This is the typical picture.
Peer to peer lending platforms are another option. These platforms offer consistent and fixed returns with percentages as high as 36%. Investors can predict the potential returns and, unlike the share market. It allows investors to save their investment by allowing them to reinvest benefits, diversify risk and build passive income streams. The investment returns are stable and constant throughout the whole period. The risk of losing your hard-earned cash is much lower than market-linked investments.
What’s the catch? Which are the best places to invest?
Share or Peer to Peer lending!
This is a difficult question that has no easy answer. It doesn’t matter if you decide to invest in the stock market or loan through the P2P lending platform.
It is important to make a wise investment in a financial asset. If we only talk about Investments with High returns, then the alternative asset class of Peer to Peer (P2P), lending, has outperformed the market-linked options in terms of average returns. Today, P2P lending is a unique and innovative way for investors to place their money in consumer debt. If you want to build your wealth, it is the best way to invest money.
