Peer to peer lending has become a popular way for individuals to earn passive income by lending their money to borrowers online. With the rise of robo advisors, investors now have an easy and efficient way to incorporate peer to peer lending into their overall investment portfolio.
Robo advisors are automated platforms that use algorithms to create and manage investment portfolios for users. They offer a hands off approach to investing, making it easy for anyone to diversify their investments and potentially earn higher returns.
Peer to peer lending can be a great addition to an investment portfolio managed by a robo advisor. By allocating a portion of your investment funds to peer to peer lending, you can potentially earn higher interest rates than traditional savings accounts or bonds. This can help boost the overall returns of your portfolio.
Additionally, peer to peer lending can provide diversification to your investment portfolio. By investing in a variety of loans to different borrowers, you can spread out your risk and potentially minimize losses if a borrower defaults on their loan.
Robo advisors can help you easily manage your peer to peer lending investments by automatically reinvesting your returns into new loans, diversifying your investments across different platforms, and monitoring the performance of your loans. This hands off approach allows you to sit back and let the robo advisor do the work for you.
Overall, peer to peer lending can be a valuable addition to an investment portfolio managed by a robo advisor. By diversifying your investments and potentially earning higher returns, you can create a well rounded portfolio that works for you.