How to make up to 15 times better return than with a bank deposit?
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More and more people are discovering their way to investment opportunities. The aim of investing is to save enough now to ensure a more enjoyable life in the future. Different investment opportunities offer various returns from investment. While the rate of return from deposit has decreased considerably since 2008, there are some new players on the market, such as Quanloop, offering a significantly better rate of return.
The average APR of an overnight deposit in Europe in 2020 is 0.02%. That is almost 99% less than back in 2008. Money deposited to a bank makes roughly 0.2% p.a. this year, which is nearly 96% less than it was back in 2008. Alternative markets offer over 10% return. Quanloop can run safely up to 15.7%.
Investing has not traditionally been open to everyone
Most of the world’s population has barely ever invested in financial assets or markets. They are stopped by hurdles such as an inability to save enough, lack of financial literacy, and a variety of crises, both natural and manmade. But these are the people who could benefit the most from investments; investments which would help them survive inflation, raise their standard of life and protect them during periods of chaos.
Barrier #1 – poverty
The overall economic environment determines your ability to generate wealth. Around 52% of American adults invest in stock markets in contrast to only 2% of Indians. The average person in India has a substantially lower income than someone living in the US or the UK, so it can be challenging to put any money aside for investment.
Barrier #2 – financial education
Without adequate education in financial literacy, people can’t utilise the benefits of investing. Around 3.5 billion adults lack an understanding of basic concepts such as numeracy, inflation, compound interest, and risk diversification.
Barrier #3 – crises
If your local economy is in freefall, it’s near impossible to become a successful investor. For example, people living in Venezuela only had access to the worst-performing stock markets in 2018 – with prices declining by 94.89%. Even if they invested in foreign stock markets, the price for American stocks such as Amazon or Google would have been too high. It would entail a multitude of additional costs from currency conversion fees to brokerage commissions.
Investment loop may be the answer
By using new methods such as investment loops, people all over the world could eliminate additional fees and start making returns without having to accumulate any specific knowledge of financial concepts. These investment loops were first devised by Quanloop, a new start-up fund operating from Estonia (EU).
What is Quanloop?
Quanloop is an investment fund with a unique business model. It borrows small sums from investors for only 24h by signing a myriad of tiny-principal agreements, each of €1 value, which is also the minimum amount. The short-term tiny-principal loans are pooled into more significant sums and then further lent to Quanloop partners, who are professional leasing and factoring enterprises. Quanloop investors compete with each other; if your interest rate is lower than that proposed by another investor, your money will be prioritised.
Quanloop founder
The idea of Quanloop came from Valentin Ivanov, a seasoned CEO and a recognised financial expert with knowledge in business operations, financials, and information technology. He reinvented the refinancing model by designing a concept of short-term investment loops for continuous capital sourcing for only 24h. Valentin has previously been the advisor and fund manager to a list of well-known professional and retail investors as well as participated in different international IT and Fintech projects.
Cash in hand
Return on your investment is always paid out on the 15th day of the coming month. The minimum performance from allocating all your funds under the highly secured low-risk plan is 5.5%, which is still much higher than what banks can offer in the current climate. With a mixture of low-, medium-, and high-risk plans, you can ensure a return as high as 15.7% per annum.
But is it safe?
Quanloop never makes direct investments. It only invests through professional partners. Quanloop’s partners are all financially independent and have a proven track record. Upon rigorous screening and review, they pick applicants for wholesale funding and pool funds together from their investors.
This, in turn, makes the money you invested more secure. Quanloop has made the decision to keep the legal structure for collateral management as simple as possible by pledging its capital to investors. That means a substantial portfolio covers every euro under their oversight.
Put simply, they take your funds, mix them with the money from others, and lend them out to their partners. The following day, they re-mix the money from the other investors and your funds that you have not requested to withdraw and continue investing, thus creating a new investment loop.
Quanloop even protects your investment from inflation
Since 2001, inflation has grown by 37.38% in Europe. That means goods and services costing €1000 in 2001 would cost €1,373 today. The average annual inflation rate has been 1.6%. Moreover, the food and beverage inflation rate has increased from 1.7% in January 2020 to 3.4% in May 2020 due to the ongoing pandemic.
To help maintain your purchasing power and struggle inflation, Quanloop has a cashback reward programme based on the Consumer Price Index. As long as you have money in your Quanloop account, it will also be safe from inflation. It is not related to your investment portfolio and doesn’t matter that your funds are not taking part in the riskier loan financing.
Cashback is paid on the 25th of the following month.
Investors can make use of the referral system, which allows you to earn 2.5% of what your referred investor takes home. The new user will also be granted with a €5 sign-up bonus.
Over 15% ROI
This is a superb alternative to a low-interest bank deposit, with profits that exceed 15% annually. Overall, this is more than 15 times higher than what you would make, leaving your money in a local bank.
Quanloop helps you to manage risks
There is always some risk involved in investing, but Quanloop helps you to manage and minimise risks.
Risk management #1 – open information
You can always look at Quanloop loan portfolio and see how much they borrowed for the day, what their capital balance is, and check out useful information on their website or from their easy-to-use mobile app.
Risk management #2 – risk diversification
You never lend all your money to finance a single debt project. Quanloop restricts you from grouping all your cash under the high-risk plan. The maximum amount allowed is 33%, while the maximum for the medium-risk plan is up to 50%. However, in the low-risk category, you can allocate as much as you aspire. In this way, their investors’ portfolio is diversified, and the risk of loss is reduced accordingly.
Risk management #3 – your investment is secure
Although the capital of the fund is not insured, your money is backed by the loan you have bankrolled and by other investments Quanloop has completed. Quanloop is not a p2p or a crowdfunding platform, so your savings are more effectively protected.
Risk management #4 – protection from cash flow problems
For every project that Quanloop finances, they provide additional reserves of 10% to prevent the possibility of liquidity problems. In the utmost case that you are not able to pull out, you will gain a yearly bonus of 2% for your extended stay. Quanloop advises you not to use your immediate income because of the possibility of briefly lacking funds for withdrawals made on the same day.
Alternative investment plans such as proposed by Quanloop still have risks attached. Again, if you act smartly and carefully and diversify, your risks are much lower, and you make an excellent return from the hard-earned money you’ve invested.
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