18/05/2024 | 4 Comments

If you are already in the world of investment, then you must be aware of P2P investments and stock market investments. While both these avenues of investment have their own set of merits and demerits, which one is better?

Let’s find out how P2P investing is different from stock market investing and understand which one would provide you with higher returns and low risk, so you can make the right choice.

What is P2P Investment?

P2P investment, also known as peer-to-peer lending, is one of the popular methods in today’s financial world where people lend money to others without the involvement of traditional banks. This lending happens through online platforms like 13Karat that connect borrowers with investors. P2P lending platforms also provide a way to earn passive income while helping others meet their financial needs.

What Is Stock Market Investment?

Stock market investment involves buying shares of publicly traded companies, thereby, making you a partial owner of those companies. Here, you can make money through dividends, which are a portion of the company’s profits distributed to shareholders, and capital gains, which occur when the stock’s value increases and you sell it for a higher price than you paid.

Benefits of P2P Investment

Here are the major benefits of P2P investment:

  • With P2P investment, you can spread your money across different loans and reduce your risk.
  • P2P lending often offers higher returns in comparison to traditional savings accounts and bonds. 13 Karat provides you with a return of up to 13% per annum.
  • Here, you can start with a small amount of capital.
    Overall, P2P investment provides an opportunity for steady returns with manageable risk.

Benefits of Stock Market Investment

  • Stocks often offer high returns over the long term and they are capable of outperforming other asset classes like bonds or real estate.
  • Investing in stocks provides liquidity as you can easily buy and sell shares when needed.
    Stocks provide ownership of the company you are investing in.
  • The stock market allows you for passive investing through index funds or exchange-traded funds (ETFs).
    With stock market investment, you can generate substantial wealth over time.

Why Choose P2P Investments?
Best Investment Options

Here are the significant reasons why you should go with P2P investment.

Steady Returns

P2P lending offers steady and predictable returns with lower risk.

Greater Control

Investors have greater control over their investments in P2P lending as they get to choose the loans they fund.

Higher Yields

P2P lending usually offers higher yields compared to traditional savings accounts.

Lower Volatility

P2P investment involves lower volatility compared to the stock market.

Recommended: Gold vs P2P Investment: Where Should You Invest?


So, this is how P2P investment is different from stock market investment. Regardless, you must keep in mind that both P2P investment and stock market investment offer unique opportunities to grow your wealth. However, if you are looking for diversification, steady returns, and control over your investment choices, then P2P investment is the right option for you.

Wish to start today? Download the 13Karat app app now and begin your journey of getting up to 13% per annum returns.