The key to the better investment strategy is diversification. The successful investor diversifies their assets with different instruments for generating profit. One of the popular options in the past couple of years is the P2P investment in loans. The modern P2P business model allows nonbank financial institutions, credit companies, to list for sale parts of their already granted loans. This way they get additional financing to further expand their businesses. On the other side are the investors, who have the opportunity to buy parts of the listed loans to benefit from the interest for their funds. The process is made possible through platforms like iuvo, which provide the needed for the purpose marketplace.
As a recognizable P2P brand in Europe with over 6 years of history, iuvo gives you 5 reasons to choose P2P investments to diversify your investment portfolio.
Higher interest compared to traditional instruments
The more conservative investors usually prefer bank products and traditional instruments because of the lower risk. However, they are often disappointed due to the low return, which their money generates and there is a tendency to look for alternative options, which offer higher return but at the same time, to not be from the more volatile options on the market.
For this segment of investors, P2P is suitable instrument. The return with iuvo can vary between 5% and 13% on annual basis, depending on the choices of the investor. This is multiple times higher than bank deposits, which usually have an interest rate less than 1%. If the investment is made through our alternative to the bank deposit – iuvoSAVE, where there is fixed interest, the choice is between 5% annual return and a 3-month period, 6% and 6 months, or 7% and 12 months.
More flexibility and higher liquidity
It is a well-known fact that the traditional instruments, for example bank deposits, are not a flexible service. You do not have quick access to your money, and if you make an early withdrawal, you lose the entire interest. If you would like to keep the interest, you have to wait for the entire period to be over, without being able to use this money for something else.
P2P investments have higher liquidity because with each installment of a loan, the investor receives a payment and part of the money becomes available. To make it keep generating profit for you, it has to be invested again, however, if you need this amount, you can request a withdrawal right away, and you will keep the accumulated return.
Our product iuvoSAVE, on the other hand, offers even higher liquidity. For a small fee, you can make an early withdrawal for up to 10 000 units in a calendar month, without having to wait to receive payments, so your money can be out of investment. You keep the interest, instead of losing it all like with bank deposits.
Better predictability in comparison with more volatile investments
As alternatives to the traditional investment instruments, the investments in stocks and cryptocurrencies are highly popular globally, mostly because of the opportunity to achieve high return. Those that prefer this option are well-aware that it brings higher risk even if they are familiar with how the market works because the changes in trends can still be unpredictable.
With P2P investments, you know the exact interest rate of a loan when you decide to buy parts of it, and the terms do not change by the end of the loan, regardless what happens on the market. Our product iuvoSAVE offers fixed interest and period. This allows predictability for a better financial planning because you know exactly when and exactly what amount you will get.
The riskier investment instruments, such as stocks and cryptocurrencies, require more of your time. It is needed to track trends daily, to get informed for the current events, to make decisions when to buy and when to sell.
P2P is a passive investment. With the help of the preferred Auto Invest tool, you can create a portfolio by your criteria for loans. It will do the job instead of you but following your settings.
IuvoSAVE is an even better option to save time. The entire process of investing is in just a couple of clicks, and after that you do not have to spend time on it. There is even an option for product renewal, which allows the investment to continue after the fixed initial period ends.
It is interesting and you have control over your money
It is always interesting to try something different than what you have done by now, including in investing. Especially when you have control over your money and you decide how to be invested. P2P can definitely be a new and interesting instrument for you, which unveils an entirely new financial ecosystem. You have the opportunity to get familiar with different business models and to make decisions by yourself. You create a strategy according to your point of view and preference.
Choose iuvo for your investment portfolio. Register and log in to your account now.