P2P investments more profitable than other asset classes
Peer-to-peer investments are more profitable than bonds, crypto and savings deposits, research from Robo.cash has found.
The European P2P platform compared the profitability of P2P and other financial instruments over the past year, taking into account current inflation rates.
According to the June results, the average rate of return on the European P2P market was 10.4 per cent, up 0.2 per cent compared to May.
Read more: Robo.cash: European P2P market serves 112 countries
The bond market also showed positive shift, with the average return being approximately 4.7 per cent last month, +0.1 per cent versus May.
“It is likely that by the end of the year we will see even higher bond rates,” said Robo.cash analysts. “However, this will not always be a real positive yield. Thus, real bond returns over the past 12 months were -3.37 per cent.”
According to the trend indicator, P2P lending is the most attractive option. “Against the background of current inflation, it gives the highest real yield of 1.83 per cent,” the analysts said. “This actually meets the target needs of investors to beat inflation and preserve capital.”
Read more: Robo.cash sees €600m of loans funded in first quarter
The annualized yield of cryptocurrency for June was 37 per cent. However, the real yield of the crypto over the past 12 months was -43.52 per cent.
The deposit market remained flat from May 2023, with an actual annualised return of 5.8 per cent. “Conservative investors now have ideal opportunities for opening bank deposits at very good interest rates,” Robo.cash said. However, analysts noted that the real yield of deposits over the past 12 months is -3.29 per cent.
Based in Croatia, Robo.cash has attracted over €80m (£69m) of investments and funded over €650m worth of loans, as of 30 June.
Read more: Robocash Group revenues rose 16.2pc last year