Why Invest in Microlans on Lendee Instead of Stocks and Mutual Funds?
Investment is essential to save up more for the future. You can’t depend on one income to grow your wealth. But no one can deny that investments carry some risk. Irrespective of whether you are a seasoned investor or a newbie, taking all the precautions is crucial.
Talking of investments, anyone can invest and make money online because there are several options, but most people know about stocks and mutual funds. Fortunately, we are here to tell you why you should ditch investing in them and instead choose the best option of a microloan investment.
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A Quick Comparison Between Mutual Funds and Stocks
|MEANING||An asset management company that manages a pool of money from different investors.||An individual holding a bunch of shares that indicates ownership in a corporation.|
|OWNERSHIP||Shares of a fund.||Shares of a company.|
|INVESTMENT||In the fund from where investment is directed.||Directly in the stock market.|
|VALUE CALCULATION||Net asset value.||Price of share on the exchange.|
Reasons Why You Shouldn’t Invest in Stocks
Most people look for the right time in their life to invest, and stocks are not for you:
- If you are not financially stable and prepared– As mentioned, investing involves risk, and stocks are known to be a high-risk investment. Therefore, if you are in debt, that’s the first indication of why you should invest in paying back the debt first.
- If you are not willing to risk due to market volatility– Everyone’s risk appetite varies. When you invest in stocks, you invest in businesses that don’t always go as planned. Even when you feel you are investing in a great company, something could possibly go wrong. Stocks are tricky because of how volatile the market gets.
- If you don’t know how the stock market works– Educate yourself about the market before even thinking about investing in stocks.
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Reasons Why You Shouldn’t Invest in Mutual Funds
It’s a popular type of investment, but there are concerning arguments as to why it’s not the best option:
- If you are not prepared for inflation risk- There’s a persistent risk of losing purchasing power. For instance, if your mutual fund profits by 5% in a year and the cost of living increases by 3%, your return will be 2%.
- If you are not prepared for interest rate risk- Rising interest rates can devalue your funds.
- If you are not prepared for management abuses- Churning and window dressing may happen if your fund manager abuses their power.
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Reasons Why Microloan Investment with Lendee Is the Smart Way to Make Money Online
- LOW RISK: Investing in microloans is much less risky than mutual funds and stocks. As an investor, you get complete access to a borrower’s credit history and habits, allowing you to make more informed decisions. It eventually reduces your risk multifold.
- HIGH-POTENTIAL RETURNS: The platform allows you to make a profit by deciding the fee and terms of your choice on every borrower’s loan request.
- DIVERSIFICATION: One of the best things about microloans is that you can diversify your investment. You earn more while reducing the risk. It’s simple. Don’t put all your eggs in one basket!
- SOCIAL IMPACT: Miroloan investment gives you the purpose to earn money on the side while helping someone in need. Most borrowers using this platform need funds to cover their basic necessities. So when you invest in a borrower, you invest in their upliftment, giving them a chance to live better.
- EASE OF USE: Using this platform is as easy as it gets to start investing in microloans and making profits. Invest in loans from the comfort of your couch and earn extra money. You can access everything on one seamless dashboard. The user interface is so simple that even a child can navigate.
- SECURED: Transactions on Lendee are safe. Invest money worry-free and receive your profits in your wallet uninterrupted.
What Should I Know Before I Borrow Money?
The Final Words
Now that you have all the information to start investing in microloans, wait no more. Join Lendee today and start earning passive income.
No need to track your earnings manually because Lendee sends you real-time notifications. Get assistance whenever you need it. The earlier your start investing in your life, the more you can grow your wealth.