One-month P2P investments popular with Millennials and Gen X
Data has revealed Millennial and Gen X peer-to-peer lending investors utilise the one-month market more than any other.
Analysis of the $150 million invested in peer-to-peer lending (P2P) platform RateSetter since its 2014 launch shows over 70% of Millennial and Gen X investors on the platform have invested in the one-month market.
For the one-year market, this figure was only 40% for Millennial investors and 42% for Gen X investors.
CEO of RateSetter Daniel Foggo said the one-month market provides a “stable, attractive return of around 4% p.a.” with ready access to money.
“Far from wasting money on avocado toast, these young investors are seizing the opportunity to make their money work hard,” Mr Foggo said.
Older investors on the platform appeared to have more favour towards RateSetter’s three and five year lending markets.
Canstar’s General Manager of Wealth, Josh Callaghan, says P2P Lenders are providing great returns to short-term investors that are hard to go by for any age group.
“Millenials tend to value control and flexibility in their investments, rather than being locked in, which might explain why they’re taking up the shorter terms primarily,” Mr Callaghan said.
“Younger investors have much easier access to equities and other investment products now which means that for their long-term money, it’s more likely to be invested in one of these assets.”
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