Investing in Portfolio diversification


Depending on the loan maturity, you can either stick to an urgent liquidity strategy or wait for your passive income. But a third option is also possible. Dividing a portfolio into two or more types is another solution that we will cover in the last article of our series on investment strategies at platform.

Diversification is a way to mitigate the risks by spreading your money across a wide range of investments in your portfolio. Despite the apparent complexity, this method is suitable for both experienced and novice investors.

What does Robocash offer in terms of diversification? If you put half of your portfolio in  two-year Singapore loans and the other half in Spanish short-term loans, your return at the end of the first year could be 11.4%. If you divide the portfolio into five parts based on the different interest rates on the platform, then at the end of the year your profitability can reach 11.5%.

The emergence of risks when investing on a P2P platform is primarily associated with a possible default. To keep your safety concerns down to zero, platform also offers you a 100% Buyback guarantee. This means that we refund you the invested amount and interest for both the loan term and the buyback period. In the event of a potential lender default, we adhere to the Group Guarantee. We closely monitor the financial flows of our loan originators, and if a threat arises, we suspend the lender's activities on the platform and fulfill all obligations to investors, including earned interest.

There are many ways to build a portfolio, depending on your goals and desires. It is only important to periodically review the distribution proportions due to the introduction of new types of loans, interest rate changes or new offers to increase investment efficiency.

Read also:

Investing in 3 key strategies for maximum profitability 
Implementing liquidity solutions
Passive income strategy 

Robocash d.o.o (“Robocash”) is a company registered in the Republic of Croatia under registration No. 081224371, with legal address at Petračiceva 4, Zagreb, Croatia, 10110.

Robocash is not regulated under any financial services license. When you invest on Robocash, you buy claim rights for loan receivables and investments in loan receivables are subject to risks. We advise diversifying investments and carefully evaluating the risks.