Diversification Still Reigns King for Peer-to-Peer Lending
The appeal and respectability of peer-to-peer lending continues to rise, creating a win-win situation for both the borrower and the lender. Prosper.com , a leading P2P lending website, has already surpassed $135 million in loans, and according to the Online Banking Report, the volume of peer-to-peer loans may hit $9 billion by 2017.
Certainly, peer-to-peer lending has both its advantages, as well as its risks. Like any type of investment, diversification is the key to mitigating the risk of loss in your portfolio. When you treat your peer-to-peer investments like you would your stock portfolio, then in the long-run, you can ensure that your gains will significantly outpace any of the losses on defaults. Here are several tips for creating the best blueprint of diversification for your peer-to-peer lending investments. (more…)
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