P2P platforms must be more transparent for sustainability

MOST investors enjoy being part of the investment "flavour of the season". A few years ago, real estate had been a rising "flavour". In fact, it was so popular that in May 2013, Singapore's Property Price Index (PPI) peaked at 175.1 (compared with March 2016's PPI at 140.6). One can easily recall back in the day, property launches received overwhelming responses. Even property investment educators had their classes packed to the brim; so much so that one in particular had to rent a big hall at the Singapore Expo just to conduct classes!

But these days, with government curbs on property investments and the recent bearish outlook on the stock market, many investors have taken a back seat on most mainstream investment assets. Yet, this does not mean a slow market for asset placements as the majority of investors have always been on the lookout for the next investment "flavour of the season".

"Come invest your money by lending to SMEs at an interest rate of 15.5 per cent per annum!" - touts a headline from an advertisement from a debt-based crowdfinancing platform.