The key to investing money wisely
It's the first question that many investors ask: where should they invest?
Traditionally, most have favored asset classes such as equities and fixed-income, largely because they are familiar choices and brokers say they are the best way to invest money. But in many cases, these firms are more interested in boosting their bottom lines than in helping you achieve your financial goals. Just because their recommendations seem to make sense doesn't mean they are the most appropriate or only options for you.
Is your financial future at risk?
In fact, in the current environment, many popular investments are generating poor returns with higher risk than one might think, potentially putting your financial future in jeopardy. As a result, you should carefully consider how to invest money and where to invest money. While you may believe you are making the right choice by sticking with old favorites, you could be losing out on the diversification benefits that can help boost long-term investing performance.
A “free lunch” strategy that can boost returns
Research has shown that portfolio diversification is the closest thing to a "free lunch” in the financial world. However, to capitalize on this well-known phenomenon, you need to invest in a variety of asset classes, especially those that are less correlated to each other and to overall economic conditions than stocks and bonds. One attractive option includes near-prime consumer loans, the emerging asset class available through Bondora that has generated strong returns since 2009.
The right combination for successful investors
Greater diversification isn't the only thing that matters, of course. Full transparency, institutional quality service providers, a respected brand, and an easy investment management system that allows you to invest money with confidence are what make the Bondora peer-to-peer lending platform the ideal choice for those who seek long-term investing success.