5 Asset Classes Explained! 1st One Is The Most Common

Asset-Classes-Explained
Graphical design of Returns vs Risk

The starting point to all investment decisions depends on your understanding of the investment options or asset classes you may want to consider.

What are Asset Classes?

The concept of Asset Classes is tough to understand because assets and their classes come with varied degrees of market behavior, tenure and value. Typically, an ‘Asset’ is an item of value which you own while an ‘Asset Class is a category of financial products. When comparing asset classes, you would typically need to look at traits like liquidity, returns and risk.

 

Sounds complicated doesn’t it? Here are a few thumb rules to help you along:

Cash Equivalent

These are assets that are convertible to cash – such as hard cash, online wallets, savings account and liquid funds. With these you have the freedom to use cash buy or invest in products from other classes. Most people however, tend to store up large amounts of idle cash into their savings account. Cash kept idle earns very low interest and hence gives you a low return.

As a Lender on Loan Singh you can invest your idle cash and earn high returns. We try and minimize the risk and borrowers are screened for credit-worthiness. The borrower’s past credit history is not taken into account.

 

Commodities

This includes gold, silver, copper, crude oil and electricity – products that have an end use and are demand dependent. They tend to be volatile as they tend to follow inflationary trends, making them excellent for trading purposes.

Loan Singh understands that the future is unpredictable. That is why investing with us makes sense, because inflation or not, you get better returns on your investment.

 

Fixed Income

One of the most commonly used asset classes; this asset class includes fixed deposits, bonds, recurring deposits, mutual funds and provident funds. The returns are predictable and the risk is low. However, only your initial investment amount is protected, with a possible negative return on maturity of the fixed deposit when adjusting for inflation.

Loan Singh returns your invested amount along with a better than market rate of return as we directly connect you to varied segments of credit worthy borrowers.

 

Equities

Stocks, startup funding, equity mutual funds and exchange traded funds are part of this asset class. They earn you – dividends, capital gains and bonus shares. It is the most volatile of all the investment options, with fluctuations in both returns and principal

Loan Singh does not use the principal amount invested by you as collateral. Therefore, you need not worry about any fluctuations that may occur when you invest with us.

 

Real Estate

Residential places, business establishments, shops and real estate investment trusts have seen increased interest from investors considering really long term returns.

Real estate requires a high amount of investment, with minimal liquidity of funds and returns that are dependent on the location and changes in regulations.

With Loan Singh you earn faster returns as borrowers deposit monthly installments directly into your account. The returns are immediate with no external factors to worry about.

 

A New Investment Opportunity – Lending with Loan Singh

Or P2P loans as they are commonly called, offer you the option to lend money to credit-worthy but under-served individuals while earning you a better than market rate of interest.

Loan Singh’s Digital Lending Platform introduces lenders and borrowers to each other. Credit-worthy borrowers are selected with the help of our ‘Seynse Score’. Borrower profiles are shared with you and you decide who you want to lend to.

Both borrowers and lenders can track their EMI status on personal online dashboards. It is easily the best Digital Lending Platform for low interest rates and quick disbursal.

Invest @loansingh.com and enjoy high returns at manageable risk levels. Call us on 18008435353 or drop us an email at hello@loansingh.com

You can also leave your comments below.

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21 thoughts on “5 Asset Classes Explained! 1st One Is The Most Common

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