P2P (Peer-to-Peer) investment, also known as peer-to-peer lending is a form of alternative investment that allows individuals to lend money directly to borrowers through online platforms, bypassing traditional financial intermediaries such as banks. In a P2P lending model, investors act as lenders, providing funds to borrowers who may be individuals or small businesses in need of loans.

Key features of P2P investment:

Diversification: P2P investment allows investors to diversify their investment across multiple loans, reducing the impact of default from a single borrower.

Higher Returns: P2P lending may offer higher potential returns compared to traditional savings accounts or other fixed-income investments.

Risks: While P2P lending can offer attractive returns, it also carries risks. Borrowers may default on their loans, leading to a loss of investment for lenders.

Regulation: The P2P lending industry is subject to varying degrees of regulation and has specific rules and requirements to regulate the industry.

Due Diligence: Investors should conduct due diligence on the P2P lending platform and carefully assess the risk profile of borrowers before investing.

It's essential for investors to understand the risks and rewards associated with P2P investment and to carefully review the terms and conditions of the lending platform. P2P investment can be an alternative way for investors to diversify their portfolios and potentially earn attractive returns, but like any investment, it requires careful consideration and prudent decision-making.