The P2P financial company (online investment-linked finance business) Rendit announced on the 5th that the cumulative diversified investments of all investors invested in Rendit exceeded 15 million.
This data has been accumulated for about 65 months from July 11, 2015, when Rendit started its investment service.
From the beginning of the service, Rendit has strongly shared that’the first law of investment is diversified investment’. In particular, as P2P investment is a new investment asset, various analysis materials for investor education were created and distributed periodically so that investors can objectively learn the correct method of diversification and the effects of diversification.
The correct method of diversification investment verified by Rendit by data analysis is’Divide the investment amount into small amounts and invest evenly.’
According to Rendit’s analysis, when the number of diversified investment bonds exceeds 100, the principal loss rate decreases significantly. Also, the more the bonds are distributed even with the same investment, the higher the tax savings effect. This is because the more you divide into small pieces and invest in multiple bonds, the more you can benefit from the tax cut by 10 won. Currently, the minimum investment amount per bond of Rendit is 5,000 won, which is the smallest amount among P2P financial companies to invest in.
As of the end of December 2020, the maximum number of diversified investment bonds per rental investor reached 12,060. The average number of investment bonds per person is 291. An average of 1071 people are investing in one loan bond, and up to 7098 people are diversifying. Considering that Rendit currently handles personal credit loans of up to 50 million won per borrower and an average of 11 million won per borrower, it can be analyzed that risk management through diversified investment is very active.
Rendit’s CEO Seong-Jun Kim said, “Personal credit bonds are an investment asset that can be technically analyzed and predicted based on a credit database, which is a national infrastructure.” We will increase investment stability by focusing more on technology development and service advancement such as data analysis and machine learning.”
Meanwhile, Rendit is currently in the process of reviewing the registration of’online investment-linked finance business’. The application for online investment-linked finance business registration was completed with the Financial Services Commission in mid-December, and formal registration is expected to be completed in early 2021.