KUALA LUMPUR, June 15 — Peer-to-peer (P2P) financing platform can serve as an ideal investment portfolio amid the uncertainties surrounding the Covid-19 pandemic.
Funding Societies Malaysia, the first and largest P2P financing platform in Malaysia said the Covid-19 pandemic has created massive uncertainty in the investment market, but it was not an isolated case for Malaysia.
In a statement today, it said globally, foreign investors are navigating uncharted waters as stock markets are becoming increasingly difficult to predict in the current economic climate.
Many experts believed that the recovery from the pandemic to be protracted, therefore, investors should remain cautious of the recovering stock markets and plan their investment decisions wisely, it said.
Nevertheless, investors should ensure that they continue to diversify their investment portfolio especially during these times.
Co-founder and chief executive officer Wong Kah Meng said it is ever more critical for investors to ensure that their investment portfolio is well-diversified amid the current market uncertainty.
“Whilst there could be opportunities for investors to make tactical investment decisions given the volatility in capital markets, they should also be aware of the increased correlation across traditional asset classes, hence the greater need for diversification beyond traditional asset classes such as stocks and bonds.
“As such, P2P investment could play a key role in the diversification strategy for investors,” he said.
Wong said aside from diversifying their investment portfolio, risk averse investors are encouraged to focus their P2P investment strategy on shorter tenure investment notes or collateralised investment notes which are more secure whilst still providing decent returns.
Overall, it is believed that P2P financing serves as an attractive investment option which caters to the needs of a wide variety of investor risk-return profiles, he added. — Bernama
