Thoughts on 12% club
I am thinking to invest around 1lakh on a p2p lending platform with secure interest rate thoughts about 12% club
I pulled out mine few months back. Not worth it. Better book a loss in stock market
coderx
Student
a year ago
Hmm interesting could you give me one reason
With all that haaytauba around the company, founders exiting, balming each other, false audit reports and above all too many people reporting their money got stuck. Too much pressure.
Buy VEDL or HindZinc for that amount , you'll get enough to dividend in a year which is more than 12%. (choose your stocks wisely)
Opt for CredMint, that too I'm dicey the way their financials are going
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I had 8 lakh in it when Ashneer was CEO. Pulled it out after the issues with BharatPe started. Wouldn’t recommend it.
Grip Invest and WintWealth have been solid so far.
The same 8 lakh I took from BharatPe and put it in WintWealth about 2 years ago.
Got about 11% return on that pre-tax
coderx
Student
a year ago
I wish they had ios app
Scrooge_McDuck
Stealth
a year ago
Are Cred employees advertising cred club on this thread now? As has been posted many times, it is absolutely stupid to risk entire credit loss for a 9% pre tax return at regular tax, so you basically make 6.3%. Equity has 10% long term taxation. So you need to make 7% on equity to make the same return. Hold and index fund for a 5 year+ period and you will make better post tax returns with no credit risk.
In this type of a product you are basically giving your money to a company like Cred to try their hand at banking. A bank FD gives you 7-7.5% to do that. For the 1.5% extra you want to take this risk?
coderx
Student
a year ago
Very well put i was unaware of ricks involved in such type of investment thinking of companies with such big brand value can have such after effects and i agree equity game with long term locking in is way to go
+1
This 12% looks very good, but think about it. To give you 12%, they will lend to someone at higher than 12%. And who knows how they check creditworthiness and how they recover money.
I withdrew my investments from 12% club considering recent reports and developments and deposited it in mint. Better opt for CRED mint, much more trustworthy and safer than 12% club as they deploy that amount to power their lending at approx 15% while providing 9% xirr with very less defaulters
Smartfella
Stealth
a year ago
Why to give it to a unknown borrower at 9% instead of buying bonds from companies like Navi at 10% on wint wealth platform?
I just unlocked CRED Mint using my coins.
Now it says the invite expires in a week. I didn’t know the minimum amount is 100k lol.
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Index fund gives 12% over a 10 year period... Risk is much lower than unsecured lending
Equitymaster
Stealth
a year ago
Why don't you explore Jiraaf ?
CleverClover
Stealth
a year ago
1L in FD vs 1L in 12% club. The difference is only 4.5-5K per year. Post tax it’ll be even lesser, might as well stick to an FD. If you want/have the appetite, explore equity options.
coderx
Student
a year ago
Yes i am convinced why not 12% thanks
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All the nbfc lending/p2p company folks - brace up
We all are in this together, this too shall pass! For better understanding - Tap here
P2P lending allows individuals to lend to others through RBI-regulated non-banking financial companies (NBFC) platforms by matching lenders ...
https://www.businesstoday.in/personal-finance/news/story/rbi-curb-on-p2p-platforms-offering-early-withdrawal-products-what-it-means-and-who-gets-impacted-442026-2024-08-19
