Return on Investment - Prosper
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Seeking a Great Return on Investment?

Return on Investment

A great return on investment starts with these three things: 1) a low starting fund entry point that 2) yields guaranteed high returns, which 3) preferably delivers overnight. This golden ROI (return on investment) triangle certainly would be nice—if it existed legally. But since we're operating in the real world of investment, let's think pragmatically.

The Goal: A High Return on Investment

When it comes to investing wisely, patience can indeed be a virtue. Smaller, prudent gains are the steps that longtime investors often seek, avoiding dubious win big/lose or "sure thing" deals.

Incremental gains every year—even if they aren't in the double digits, percentage wise—are still earning you money. This is why many investors still favor blue chip stocks, even if they may lack the excitement of the latest fickle fad.

And in effect, the slow upward climb can yield the high return on investment you've been seeking. It may just take a little longer to get there.

Wall Street and the Day Trader Stock Return on Investment

Day traders are people who, as the title implies, buy and sell on the stock market in the same day, often hoping to arbitrage their way upward economically. These investors may either work for an institution, or go it alone and play the market by themselves. This lifestyle can be quite a financial (and emotional) rollercoaster.

Most of us probably aren’t looking for this level of commitment and drama with our investments. We simply want our money to grow—effectively avoiding the Bears vs. Bulls ROI battle on Wall Street as much as possible. Thanks to the power of the Internet, a new type of investment now exists.

Prosper: Offering the Best of Both Investing Worlds

To truly understand ROI, you need to accept patience as an investment strategy. Diversification is another key concept to know about. As it turns out, some of those clichés we've heard since childhood about good things coming to those who wait—while avoiding placing all of our eggs in one basket—can provide good guides for investing, too.

Prosper is not the platform for investors looking to make millions in returns by the end of the year. Rather, we provide you with the financial tools to make decisions that are right for you and earn a great rate.

For those who do prefer the hands-on Wall Street style of investing, you can browse through our pool of borrowers and search for results based on what's significant to you. This can be a listing's Prosper Rating, keywords that determine the loan's intent, or more personal details about the borrower (for instance, "firefighter in NYC").

The customization element provides a very important social aspect to Prosper that's missing in most stock market investments, which are faceless and provide very little, if any, information on how your money will be used. Here on Prosper, your investment can help real people.

And if you’re looking for a simplified approach to investing, we offer Quick Invest. After choosing basic or detailed lending criteria, Quick Invest will give you the loans that meet your goals, so you can invest your money all at once with convenience and ease.

The world of investing can offer many rewards, if it's approached from the right perspective. At Prosper, we intend to provide the opportunities and resources that can help you reach your investing goals of a great return on investment.

How Does Prosper Work?

Investors create an account, set their parameters, and purchase Prosper Notes. Each Prosper Note corresponds to a listing which sets forth the relevant details about the loan, including loan amount, Note rate, yield percentage, and borrower information. Any payment from a Prosper Note is dependent on the payments Prosper receives on the corresponding loan.

The Notes that correspond to specific borrower listings are offered by prospectus. Investors should read the complete description of the Notes and risks associated with making an investment in the Notes as well as other information about the Prosper model in the prospectus.

Prosper Notes are risk bearing and speculative investments for suitable investors only. If a borrower fails to make payments on the corresponding borrower loan related to your Prosper Note, you will not receive payments on your Note. There is the potential that you will not receive any payments on a Prosper Note. You should review the prospectus before investing through Prosper. Not FDIC-insured. Notes may lose value. No Prosper or bank guarantee.