If you want to watch your wealth grow, investing is the way to go. The problem that many people encounter, however, is getting the process started. That’s why we’ve put together this quick step-to-step guide on how to start the rewarding path of being a successful investor.
Do Your Research on Investment Platforms
Investment platforms are the ideal way to manage your portfolio. Before you choose the “right one,” you have to consider a number of different factors including:
- The type of investment: Some platforms are more geared toward different investment types than others.
- Your budget: Different platforms charge different fees for using their services.
- Usability and features: The platform you choose should be easy to use as well as suitable for your level of experience and your investment needs.
Take some time reading reviews from other users of the product. This will give you a good idea of how you can expect the platform to perform and whether it’s the right choice for you.
Understand Your P2P Lending Options
The next important consideration is which type of P2P lending you’re interested in. There are three principal forms of P2P lending in existence today:
1. Consumer Lending
This original form of P2P lending involves small and unsecured loans given to individuals to consolidate debt and fund purchases (such as holidays, home improvement projects, and automobiles). Platforms purchase personal data which allows borrowers to be ranked via credit rating to determine who is most likely to repay the loan.
2. SME Business Lending
These loans can be unsecured or secured against the assets of a company or a personal guarantee from directors or shareholders. This type of loan is typically made to trading Limited Companies.
Platforms in this space purchase business data and rank borrows via their credit rating to determine who is most likely to repay the loan.
This type of loan is usually used for working capital, expanding a business, and financing business assets. The one risk with this type of loan is that the company could go into bankruptcy.
3. Property Lending
These secured loans can be made to both individuals and limited companies for personal mortgages, commercial loans, and residential developments/refurbishments. This type of loan is considered less risky than SME loans since the platform can repossess and sell assets and property to repay the loan.
Third party professionals are used by platforms to determine the value of the property and to ensure that the title for the property is clear.
Take Advantage of Technology
Once you’ve chosen the right platform for your investment type and goals, make sure you take full advantage of all of the features it has to offer.
Here at VIAINVEST, we’ve just recently released an app for both iOS and Android smartphones that makes it easy to manage your investment portfolio with just a few short taps. Currently available in beta, our on-the-go technology allows users to oversee their funds in a real-time environment and make reliable and safe fixed-term and open-end investments.
Diversify Your Portfolio
Most of us have heard the old cliche of not wanting to put all of our eggs into one basket. This could not be more true than when it comes to investing.
Spreading out your investments allows investors to strike a balance between risk and reward. Though it may sound fairly straightforward, technologies will help you navigate the many complex iterations involved in diversifying your portfolio.
Keep in mind that diversifying your portfolio won’t give you a guarantee against loss. It can, however, give you greater peace of mind and shield you from stomach-churning market volatility.
Be Prepared to Wait It Out
Many of the best investment returns are made by doing one easier-said-than-done task: waiting.
Far too many investors choose to “go with the flow” when buying and selling. While this may protect you from substantial loss, it will also only likely only give you subpar to average returns.
Patience is a trait most profitable investors share. By waiting out the lows and seeing how “high” your investment can surge in the long-term, you stand to get the most out of your investment.