HomeBlogInvestorAn Alternative Asset ClassSelecting the Best Investment Option – Investor’s dilemma!

Selecting the Best Investment Option – Investor’s dilemma!

Investing is creating an asset for an alternate inflow of income. Investments are made systematically over a time period with the view of earning multifold returns. But are you in a dilemma to know which investment suits your risk appetite the best? We’ve covered the subsequent during this article:

  • Direct Equity

Direct equity, commonly mentioned as investing in stocks, is perhaps the foremost potent investment. Once you buy a company’s stock, you purchase partial ownership of that company. You directly invest in the company’s growth and development. But the plethora of alternatives available in the market makes it a time-consuming and hit-and-trial method.

Stocks are offered by publicly listed companies through recognised stock exchanges and require a Demat account for investment. Stocks are ideal for long-term investments. You’ve got to actively manage the investments and make quick decisions due to the volatility that this market is exposed to. Also, the returns aren’t as there are many risks associated with this investment option.

  • Peer-to-peer Lending

A safe from market volatility investment with far better returns than the normal sort of investment.

Peer-to-peer lending is a marketplace for creditworthy borrowers and investors looking for lucrative alternatives to invest in. It involves direct lending to individuals or businesses without the hassle of banks. The processes followed by peer-to-peer lending platforms are entirely digital and revolve around the concept of fund diversification to mitigate risk associated with defaults.

  • The borrowers on Peer-to-peer platforms come from an outsized demographic pool, primarily consisting of salaried individuals. 
  • As a new-age investment, peer-to-peer lending companies enable higher returns and lesser hassle compared to conventional investments like mutual funds, stocks, and deposit accounts.
  • Moreover, sustained higher returns on investment and no market volatility make Peer-to-peer lending a sought-after investment option among investors.
  • The key for default risk mitigation is diversification of investment among multiple borrowers. Optimal diversification can vastly improve the performance of your Peer-to-peer investments ensuring higher returns.
  • Mutual Funds

An open-end fund is made when the capital collected from various investors (both individuals and institutions) is invested in purchasing capital assets like company shares, corporate, and government bonds. Mutual funds are broadly classified into equity funds, debt funds, and hybrid/balanced funds, counting on the extent of equity exposure. An equity-linked savings scheme (ELSS) is the only mutual fund covered under Section 80C of the tax Act, 1961.

Mutual funds are flexible investment vehicles that allow an investor to begin and withdraw investments at their convenience. One may either invest in these funds themselves or through a portfolio manager. It is tedious to find an investment class suited to one’s profile and fit one’s own risk-taking appetite.

  • Fixed Deposits

Fixed Deposits are the most preferred and known to be the safest asset class to grow your savings for a longer duration of time. The amount and tenure of lock-in can be decided at one’s convenience. On completion of the pre-decided tenure, your deposit starts earning interest, throughout the chosen duration, as per the rate of interest at which you locked in your deposit. But, the returns are considerably low and do not beat inflation in the long run

Thus, you get returns on your deposit over time, which is lower than other asset classes.

LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping investors diversify their investments beyond traditional investment instruments ever since.



The Reserve Bank of India does not accept any responsibility for the correctness of any of the statements or representations made or opinions expressed by Innofin Solutions Private Limited, and does not provide any assurance for repayment of the loans lent through its platform.

LenDenClub is an Intermediary under the provisions of the Information Technology Act, 2000 and virtually connects lenders and borrowers through its electronic platform via the website and/or mobile app.

The lending transaction is purely between lenders and borrowers at their own discretion, and LenDenClub does not assure loan fulfilment and/or investment returns. Also, the information provided on the platform is verified or checked on the best efforts basis without guaranteeing any accuracy of the data/information verification. Any investment decision taken by a lender on the basis of this information is at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower, fully or partially. The risk is entirely on the lender. LenDenClub will not be responsible for the full or partial loss of the principal and/or interest of lenders’ investment amounts.


*P2P investment is subject to risks. And investment decisions taken by a lender on the basis of this information are at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower.

** Average value mentioned is the weighted average of returns received by investors

© 2023 LenDenClub by Innofin Solutions Private Limited | CIN: U74999MH2015PTC266499


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