Top 5 reasons why you should diversify your investments with CapBay P2P
Since the outbreak of the COVID-19 pandemic, we’ve observed high market volatility due to the uncertainties surrounding economic restrictions in Malaysia. We know investors are actively searching for alternative investments to earn steady returns on their investments. Today, we’ll be talking about how you can consider investing with CapBay Peer-to-Peer (P2P) as a way to diversify your investment portfolio while earning attractive returns.
In short, P2P Financing platforms match businesses directly to investors to obtain financing. You don’t need a middleman like a financial institution to work as an intermediary. It’s a two-way street. Businesses have the opportunity to raise funds for their company and you, as an investor, get to see what you are investing and how much you will get in return.
While a lot of articles talk about the benefits of P2P financing for SMEs, there are also many advantages of being an investor. Read on to find out more:
1. Earn steady and reliable net returns
By investing with CapBay P2P, you can unlock net returns of up to 10% p.a. Of course, like any investment, these returns come at a risk. Remember that when investing on P2P platforms, risk-returns are dependent on the credibility of the Issuers on the platform. This differs from other market-linked investments such as mutual funds and equities where the returns fluctuate according to the performance of the stock market.
2. Robust risk management
Leveraging data and automation, CapBay is able to curate high quality and safer financing notes for investors. Recognising the risks involved, CapBay specializes in providing financing to SMEs backed by blue-chip companies and Government-Linked Companies (GLCs). This allows our investors to invest in much safer SMEs.
3. Passive Investing
In CapBay, we aim to provide a seamless investment experience from account opening till the end. With our Auto Invest feature, you can easily automate your investment across various notes on our platform. All you have to do is select an Auto Invest profile according to your risk appetite and CapBay will take care of the rest. Alternatively, you can also manually invest more in notes that you are confident in. However, it should be highlighted here that diversification does not eliminate or remove all risk in respect of investment.
4. Generate returns on undeployed cash
Another great feature when investing on the CapBay P2P platform is that we ensure your money will truly work for you. CapBay Plus ensures that you continue to generate returns, giving you FD equivalent returns on undeployed cash as long as your Auto Invest profile is enabled.
5. Contribute to the growth of Malaysian SMEs
As you know, P2P is a form of crowdfunding that enables Malaysian SMEs to obtain financing directly from investors. This simplifies the financing process for SMEs while providing alternative investment opportunities with attractive returns for investors. And most Issuers on the platform are made up of (SMEs) which are heavily impacted by the pandemic. By investing in P2P, you can support Malaysian SMEs and improve the economy too! As any Malaysian will say, Malaysia Boleh!
*This article is not meant to recommend CapBay P2P products or be used as a tool to make any investment or financial decisions. Product recommendations must be independently evaluated before you invest. Any product recommendation by CapBay must not be regarded as financial planning or financial advice.
