Everyone wants to invest something for their future, but they do not know how to invest and what the best investment options are. The following points will let you know about the smart investment options.
- Investing in a Mutual Fund – People that want to save something with a balance of risk and return will generally choose the mutual fund platform. These days, investing in stock markets through a mutual fund is trending, which you can follow too. The mutual fund investments will give you a good sum of return.
- Investing in Gold – It is needless to mention, gold is one of the evergreen and vintage investment options. Your investments will increase when the value of the gold increases. You can invest on various gold investment options like, gold bar, gold mutual fund, gold deposit scheme, gold ETF and more. Within a short period of time, you can benefit from gold investments. It is considered as the finest investment option that you can reckon. Be it the online based investment and lending process, the application process is easy, straightforward and convenient.
- Public Provident Fund – It is one of the safest and secured long-term investment options. The best part is that, it is totally tax free. The money get locked for 15 years into the PPF account opened in bank or post office and you can earn interest for the amount in your account. If it is needed to be, you can as well extend the time period to next five to six years as you wish. Moreover, it remains the best investment option as it is not a long-time commitment. The lending period can be decided by the investor and borrower in a flexible way.
- Real Estate Investment – The real estate gets hold of a lot of benefits in sectors like retail, residential, commercial, manufacturing, hospitality and more. You can buy a plot or flat to earn something within a period of six months. Yes, the value of the property continues to increase every six months. However, it remains a smart investment option due to the benefits it offers to the borrowers and investors. The borrowers and investors are going to make direct contact with each other and they can decide everything with their knowledge.
- P2P lending -You can choose P2P lending as your investment option. If you do, you can able to earn higher rate of interest compared to the conventional investment options. A research has revealed that, on average, p2p lending is provided with 16% annual interest rate. It has a lot of advantages as compared to other conventional methods. P2P lending will makes the win situation both for the borrowers and the lenders. The procedure becomes transparent which urges more people to invest in it. Even there are no specific universal rules and it differs from website to website. You just need to focus on the duration of the investment.
What Do You Need to Know About Peer to Peer Lending?
The P2P lending works like market places. This type of lending will bring businesses or people together that want to lend money. The P2P borrowing is not like getting loan from banks or credit unions. In this lending, the borrowers will be matched directly with the investors via a lending platform. The investors will check exactly which loans they want to fund.
Do the following things for getting started with peer to peer lending,
- Open an account with the P2P lender and transfer some money by debit card or via a direct transfer.
- Fix the interest rate you would like to receive or just agree the interest rate that is on the offer.
- Now, lend an amount for a particular period of time, say two or five years. You have to pay the interest rate for the entire period of time until you give back the money which you have lent.
Do not think that, peer to peer lending is not a recognized option for investment. If you think like that, you are extremely wrong. Keep the following points in mind when you are about to choose the P2P lending.
- The P2P lending is an online marketplace for both lenders and borrowers.
- The online platform remains easy to use to both borrowers and lenders. They can both finalize the things among them in online through the conventional financial institutions.
- The best part is that, the RBI as well regulates the P2P lending to offer freedom to the investors either to accept or reject the loan proposal and freedom to borrowers to select the right lender.
The peer to peer lending was a disruptive technology, but not now. Now, the P2P lending is gaining familiar among all the investors and borrowers, as it is easy to deal with people. No financial institutions or banks or credit unions are going to operate in between the borrowers and lenders. With the P2P lending, you can borrow money for anything including building homes, children’s education, daughter’s marriage expenses and more.
P2P lending is not a risky option if you find out the best and loyal lender. You are going to draw an agreement, so you do not need to worry about anything. The current decade is all about finances. Choosing the best investment option matters to your savings and P2P lending could serve as an excellent investment option to anyone. This is all about peer to peer lending.