Optimizing your Investment Strategy in 2021

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The interest rates for new deposits with agreed maturity in European banks were not greater than 0.3% in 2020 and are not expected to exceed this value in the next year. But this doesn’t mean that there are no ways to optimize your investment strategy in 2021 and generate much higher passive income. 

As an alternative to saving and deposit accounts, the TFGcrowd crowdfunding platform provides investors access to a P2P lending marketplace, where you can provide invoice or business loans to selected companies and get the loan repaid with interest. The average interest you earn on the P2P lending marketplace is a whopping 24% per annum, meaning your returns could be way above the interest rate that could be earned from bank deposits. All transactions are performed online via your TFGcrowd platform account, which makes investing seamlessly easy. What is even more important – it’s available for both beginners and experienced investors alike.

This year TFGcrowd decided to take it one step further and make the investment process even easier.

Now TFGcrowd offers investment plans with pre-defined fixed annual interest. Each plan is based on a balanced and diversified investment portfolio consisting of invoice (50%), business (40%), and property (10%) finance.

Compared to P2P lending, when you choose to invest in an investment plan through the TFGcrowd platform, there is no need to spend time on the company's assessment and due diligence. The right investment objects have already been selected for you to ensure the best balance between risk and returns. The minimum investment amount for the beginner’s plan is only €100.

Types of Investment Plans

Currently, there are three types of investment plans on offer that have different terms, interest, and minimum entry point investment. Any of the plans can be started at any time and you can also increase the funds put into any of the plans at any time, as well as spread your investments between different plans.

The best option for those seeking stability in the long-term is the three-year-long program that provides the highest yield as well as offers weekly payments of interest into your TFGcrowd account.

For beginners, who are only just starting their investment journeys, the way to go is the annual program with a minimum entry point of investment as low as €100 and yielding a 14% interest rate, which is paid out monthly. 

The third investment plan offers both stability and high returns with a smaller minimum investment requirement, therefore may be more suitable for investors looking for long term investments yielding high and stable returns, but not willing to invest large amounts.

Below is a brief summary of the main terms of each investment plan on offer:

Benefits to be gained from an Investment Plan

  • Guaranteed fixed annual interest. You earn interest specified in the selected investment plan regardless of fluctuations in the underlying investment returns.   

  • Diversified and optimized investment portfolio without any effort from your side. You no longer need to spend time on market research and due diligence to shape your investment portfolio: the investment objects included in each plan are already hand-picked for you to ensure the best balance between the risks and interest paid. 

  • Low minimum entry point amount. To get started with an annual program, you only need €100. However, to maximize your returns, it is probably wiser to start with at least €500 and select a 2-year Investment Growth plan that allows earning 24% per year compared to just 14%, if you chose the Beginners Investing plan. 

  • Regular interest rate payments. The interest is accrued and paid monthly or weekly depending on the selected plan. Thus, you can see how your wealth is growing month after month. 

  • Choice of maturity length. You can select the investment term (1, 2, or 3 years) that fits your goals best.

  • Invest in multiple assets via a single platform. You make a single investment and keep track of your earnings in the TFGcrowd account, while the deposited amount is invested into a range of investment objects at the same time with no effort from your side. 


How your wealth will be growing with the selected Investment Plan

For every €1,000 invested, your expected return will be:

  • €1,140 in one year if you choose the  Beginners Investing plan.
  • €1,480 in two years if you choose an Investment Growth plan.
  • €1,780 in three years if you choose a Longterm Planning plan. 


Useful Links

Learn more about Marketplace.
Get started with Invoice Financing.
Learn more about the Valuation system.