Introduction
Bondora Go&Grow is an investment product that has become quite popular among investors in recent times. The product promises high returns and low risks, making it a suitable option for novice investors. However, like every investment product, Go&Grow has its advantages and disadvantages that investors need to be aware of before investing their money. In this article, we will look at the advantages and disadvantages of Bondora Go&Grow.
Advantages of Bondora Go&Grow
1. High Returns
Bondora Go&Grow offers high returns on investments, which is one of its major advantages. Investors can expect an annual return of 6.75% on their investment, which is significantly higher than the interest rates offered by traditional savings accounts.
2. Low Risks
Another advantage of Bondora Go&Grow is that it has relatively low risks. The product invests in a diversified portfolio of loans, which spreads the risks across different borrowers. Moreover, Bondora has a recovery process in place in case of defaults, which further reduces the risks.
3. Easy to Use
Bondora Go&Grow is user-friendly and easy to use. Investors can sign up for an account, deposit funds, and start investing within minutes. The platform is also easy to navigate, making it simple for investors to track their investments.
4. Liquidity
Bondora Go&Grow offers investors liquidity, which means they can withdraw their funds at any time without any penalty. This feature provides investors with the flexibility to access their money when they need it.
5. Auto-invest
Bondora Go&Grow has an auto-invest feature that allows investors to automatically reinvest their earnings. This feature ensures that the investment continues to grow, and investors do not have to worry about reinvesting their earnings manually.
Disadvantages of Bondora Go&Grow
1. Limited Investment Options
One of the main disadvantages of Bondora Go&Grow is that it offers limited investment options. The product invests only in loans issued by Bondora, which means that investors do not have a diversified portfolio.
2. No Control over Investment Decisions
Bondora Go&Grow invests investors’ money on their behalf, which means that investors have no control over investment decisions. This feature may not be suitable for investors who prefer to have more control over their investments.
3. Currency Risks
Bondora Go&Grow invests in loans denominated in Euros, which exposes investors to currency risks. If the value of the Euro declines, the returns on the investment may also decline.
4. Fees
Bondora Go&Grow charges a fee of 1 euro for withdrawals, which can add up over time. Other than that, Go&Grow doesn’t have any other fees at the moment (May 2023).
5. Not Suitable for Short-term Investments
Bondora Go&Grow is not suitable for short-term investments as it takes time for the investment to grow. The fee for withdrawal is € 1 and therefore it is often not the best advice to withdraw the money immediately after investing.
Conclusion
Bondora Go&Grow is a popular investment product that offers high returns and low risks. However, like every investment product, it has its advantages and disadvantages. Investors need to weigh the pros and cons carefully before investing their money. Bondora Go&Grow may be suitable for investors who are looking for long-term investments with relatively low risks.
We have already written some articles about p2p lending or even on the impact of interest rates. If you are interested in other ways of investing. Have a look at our category “investing”.
Q&A about advantages and disadvantages of bondora go&grow
- Q1. Is Bondora Go&Grow safe?
- Bondora Go&Grow is relatively safe as it invests in a diversified portfolio of loans and has a recovery process in place in case of default. However, as with any investment, there are risks involved, and investors should do their own research before investing.
- Q2. How long does it take to see returns on investment with Bondora Go&Grow?
- Investors can expect an annual return of 6.75% on their investment, which is credited to their account daily. However, it takes time for the investment to grow, and investors should consider Go&Grow a long-term investment.
- Q3. How do I withdraw my funds from Bondora Go&Grow?
- Investors can withdraw their funds from Bondora Go&Grow by requesting a withdrawal on the platform. A fee of 1 euro is charged for each withdrawal.
- Q4. Can I invest in other currencies besides Euros with Bondora Go&Grow?
- No, Bondora Go&Grow only invests in loans denominated in Euros, which exposes investors to currency risks.
- Q5. What is the auto-invest feature of Bondora Go&Grow?
- The auto-invest feature of Bondora Go&Grow allows investors to automatically reinvest their earnings, ensuring that their investment continues to grow. This feature saves investors time and ensures that their money is working for them.
