To reiterate the importance of having quality advisors & investment assets. We have invited co-founder of LiquiLoans to share insights onto the impact of the current market on the popular short-term debt product ‘Consumer Loans via Merchants’ in an exclusive webinar.
Our partner LiquiLoans puts clients interest ahead of their i.e. They enable the investors to make their hurdle (11%/12% annualised) first and then can Liquiloans make any money.
In the last two years, all the 4000+ investors have received the returns as per their investments of 11%+.
Granular diversification with an avg. exposure per borrower shall be < 1% of the overall portfolio; avg. 100-300 borrowers are assigned to each lender based on investment amount.
The provider of ‘Consumer Loans via Merchants’ is RBI regulated P2P NBFC which has an impressive low NPA of 0.85%. Typically Bank Retail NPAs ranges from 1.5% to 4%.
Liquiloans has created an excellent prime borrower loan book and replicated the retail loan strategy of the successful banks and NBFCs in the last 20 years viz. HDFC Bank and Bajaj Finance & consists of mainly salaried, high credit bureau score rated individuals in large metro cities.
Liquiloans’ provides Zero cost EMI loans like Bajaj Finance to borrowers with 700+ CIBIL rating + Low FOIR only.
The product is not Yield to Maturity based like traditional debt mutual funds, so even if there is rate change in the market – there is no impact on your investment, i.e. for one year from your investment date, your hurdle will not change.
Currently – the asset has two plans:
11% annualised return with 100% liquidity
12% annualised returns with 1-year lock-in
FAQs
1. What do short-term assets encompass, and what significance do they hold for investors?
Ans. Short-term assets encompass financial instruments characterized by relatively brief maturity periods, including cash, money market funds, and short-term bonds. Their importance for investors lies in providing stability, liquidity, and effective means to navigate and address market volatility.
2. In what way do short-term assets assist investors in overcoming market volatility?
Ans. Short-term assets serve as a protective refuge during periods of market turbulence. They offer liquidity, enabling swift access to funds, and exhibit a reduced susceptibility to the price fluctuations commonly associated with longer-term investments. This capability aids investors in effectively managing and reducing the influence of market volatility.
3. What is the difference between cash and money market funds?
Ans. Cash typically refers to physical currency and funds held in checking or savings accounts. Money market funds are mutual funds that invest in short-term, low-risk securities, providing higher yields than traditional savings accounts while maintaining liquidity.
4. Are short-term assets suitable for long-term investments?
Ans. Short-term assets are generally not ideal for long-term investments aimed at wealth accumulation. They are more suitable for preserving capital and providing stability during shorter investment horizons.
Conclusion
In summary, successfully managing and outperforming market volatility using short-term assets demands a strategic and adaptable investment approach. Short-term assets, encompassing cash reserves, money market funds, and short-duration bonds, present stability and immediate liquidity during turbulent market phases. These financial instruments empower investors with the versatility to respond to evolving market dynamics and capitalize on emerging opportunities.
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on stock picking, poring over excel sheets, financial news, analyzing market trends, tracking the Sensex, researching company fundamentals, comparing mutual funds, reading financial reports, trying to predict the future & losing your sanity!
