P2P market shows the highest real profitability
P2P investments have strengthened their returns over the past year amid renewed growth in competing assets – bonds, cryptocurrencies and deposits.
Analysts of the Robocash platform compared the profitability of P2P and other financial instruments over the past 12 months, taking into account inflation at the moment.
According to the results of June, the average rate of return on the European P2P market was 10.4%, up 0.2% compared to May.
The bond market also showed positive shifts. Last month, the average return on this low-risk asset was approximately 4.7%, +0.1% versus May. “It is likely that by the end of the year we will see even higher bond rates. However, this will not always be a real positive yield. Thus, real bond returns over the past 12 months were -3.37%.” – Robocash analysts comment.
The deposit market, a direct competitor for bonds and P2P lending, remained at the level of May 2023, with an actual annualized return of 5.8%. “Conservative investors now have ideal opportunities for opening bank deposits at very good interest rates.” – say experts. At the same time, the real yield of the instrument for the past 12 months is -3.29%.
The annualized yield of the cryptocurrency for June was an impressive 37%. Most likely, by the end of 2023, prices for this high-risk asset will rise due to the growing popularity of such investments among the world’s leading investment funds. The real yield of the crypto over the past 12 months was -43.52%.
According to the trend indicator, P2P lending is by far the most attractive option of all possible. “Against the background of current inflation, it gives the highest real yield of 1.83%,” analysts comment. “This actually meets the target needs of investors to beat inflation and preserve capital.”