P2P Lending
Peer-to-peer lending platforms connect borrowers directly with lenders, offering loans without traditional financial intermediaries.
Characteristics:
- Potentially higher returns than traditional savings
- Higher risk
- Online platforms
- Regulated by RBI in India
Portfolio placement :
P2P lending is suitable for high-risk tolerance investors looking for high returns. It should be a small, speculative part of the portfolio due to the associated risks.