Invest & Fund heralds P2P’s fixed income-like returns amid market volatility
Peer-to-peer lending offers returns comparable to traditional fixed income and can provide diversity amid volatile public markets, Invest & Fund has said.
It has been a turbulent summer for global markets, partly due to weak US jobs data and concerns around tech valuations.
Read more: Invest & Fund unveils £100m bank funding line
Invest & Fund conceded that P2P lending is still exposed to massive movements in financial markets that impact the wider economy, but added: “when it’s raining, everyone gets wet, but there are those with the umbrellas of diversification to shield themselves from the worst of it”.
The firm suggested that investors looking for fixed returns over a mix-term horizon may not have their requirements met by equities alone.
Read more: Private credit “golden age” to continue
“In a blog that’s packed with old adages this week, ‘time in the market often beats timing the market’, but nobody knows in equities what that successful timeframe will be,” Invest & Fund said. “If you want a return comparable to traditional fixed income and want to control what that ‘time in the market’ looks like, the P2P asset class offers those solutions and returns with the same tax-efficient compounding effect on multi-year diversified investments.”
Read more: HNWIs more bullish on private markets than public
