Investing in SME Lending vs Stocks and Bonds (and via Robo-Advisories)
As published on WealthUp:
The previous decade has seen the rise of robo-advisors; automated platforms that help investors to allocate their capital. Robo-advisors now include options from insurance to specific stock picks as well as thematic portfolios of stocks, based on the appropriate risk/reward ratios of the users.
At the same time however, we have also seen the rise of a growing asset class – SME lending. Through crowdfunding (or crowdlending) from a group of individual lenders (also known as investors), P2P platforms such as Validus provide the opportunity to accredited investors seeking to diversify their portfolio and increase resilience.