Below are some of the things that should be kept in mind while investing in P2P loans:
- Always invest via the auto-invest approach
- In the auto-invest option, choose a mixture of different risk categories and allocate maximum amounts that you want to invest in each
- Invest small amounts such as 500 or 1000 max into a large number of loans for better diversification
- Invest across a spectrum of different risk categories to diversify and reduce your risks
- Invest in different P2P lending platforms. Don’t stick to only one platform. According to my experience, I would recommend Lendenclub and Faircent as the top P2P lending platforms in India.