Per Annum Celebrates Delivering 100% Expected Returns to its 5 Lakh Plus Investors
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Peer-to-peer (P2P) lending has evolved into a trustworthy asset class in the financial landscape, offering unique opportunities for investors. Per Annum, India’s fastest growing alternative investment platform & Lendbox, which is India’s one of the first registered NBFC-P2P were founded by the same co-founders; Ekmmeet Singh (CEO), Bhuvan Rustagi (COO) and Jatin Malawal (CTO).
Peer-to-peer (P2P) lending is an RBI-regulated asset class that helps investors generate stable returns by investing in India’s Top 2% creditworthy borrowers. P2P lending platforms act as intermediaries between investors and borrowers, overseeing key aspects of the lending process, including credit assessment, onboarding, loan distribution, collection, and recovery. This investment avenue allows investors to generate stable returns on their surplus funds, while borrowers can access the credit they need to fuel their business growth. Investors can expect returns up to 11-12% per annum depending upon their investment plans.
Per Annum’s Vision
Per Annum commenced its operations in 2021 with a visionary goal - to build India's largest platform for alternative investments. The objective was clear to unlock a diverse range of investment products that were largely available only in foreign markets. The focus was on minimizing risk exposure to volatile markets, offering stability to investors, and building wealth through non-market-linked investments.
Impressive AUM Growth
Per Annum's journey from 2021 to 2024 has been one of remarkable growth stories. It’s Assets Under Management (AUM) and the investor base has grown exponentially year on year during this period.
In 2024, Per Annum achieved a remarkable feat. The AUM so far has reached ₹3000 crores with 5 lakh + investors by May 2024.
Per Annum’s Investment Plans
1. Fixed-Term Investment Plan: Diversifying Stability Across Durations
Per Annum offers a variety of fixed-term investment plans, spanning durations from 1 month to 5 years lock-up. Investors can enjoy stable income returns, ranging from 11% p.a. to net annual returns (compounding) of 14.58%. This diverse range provides flexibility for investors to choose the duration that aligns with their financial goals, offering a reliable and stable avenue for wealth creation.
Fair and Transparent Fee Structure
Investors do not have to worry about hidden fees or charges when operating on a fair and transparent fee structure. As an investor, there are no upfront fees involved.
Focus on Risk Management & Borrower Diversification via Robust Lending Mechanisms
Per Annum's delivery of 100% expected returns has been largely possible because of their risk management checks and innovation.
In Per Annum, the strategy of spreading investments amongst several borrowers lowers the investor's risk. Instead of investing a substantial amount to a single borrower, chances of risk are high, but Per Annum’s sister entity Lendbox distributes the money among multiple borrowers. This approach minimizes the impact of potential defaults, as the risk is now spread across too many borrowers.
For example, suppose one borrower encounters challenges and cannot repay. In that case, the investor's exposure to risk is limited to a smaller fraction of the total investment, often as low as Rs. 100-1000.
By such extreme diversification, the investor can better withstand individual defaults and ensure a more stable investment experience. This Per Annum strategy acts as a risk mitigation technique, contributing to a safer and more resilient financial ecosystem for investors.
Backed by the Performance Linked Fee Model
Per Annum has meticulously built massive trust among its investors through a steadfast commitment to its Performance Linked Fee Model (PLFM). Despite consistently delivering impressive 100% expected returns each year, Per Annum remains dedicated to the principles of transparency and fairness.
If the company doesn’t deliver the expected returns, Per Annum tries to ensure investors get their due. Suppose if an investor who has chosen an investment plan that is offering 11.5% p.a. returns but on maturity the company was able to provide only 10.5% annual returns; in that case, the company uses its margins to compensate for the remaining 1%, ensuring that investors get their expected returns. Moreover, Per Annum has been able to keep their gross NPAs less than 1%.
Navigating Towards a Promising Tomorrow
In conclusion, Per Annum's approach to investment management, stringent risk control, have consistently yielded impressive returns for their ever-expanding community of 5 lakh active investors. With robust Assets Under Management (AUM) of almost ₹3000 crores as of May 2024.
Disclaimer: No Business Standard Journalist was involved in creation of this content
Topics : Investors
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First Published: Jun 07 2024 | 4:14 PM IST