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Zero Principal Loss Investing - New Ways To Earn a Return Safely

Zero Principal Loss Investing - New Ways To Earn a Return Safely

Zero Principal loss investing is a new concept to most people. This article shows you one of the many ways to be exposed to this investing strategy.

Feeling safe with whatever investment vehicle you use to take your money further is important. Safety can be defined in several ways. This article will explain our philosophy at Outlet as to what we are calling Zero principal loss investing. This concept is why most people use the Outlet mobile app.

Zero principal loss investing

Zero principal loss investing is an investment strategy that protects the initial investment principal. In other words, at minimum you get back the amount of money you put in, at best you earn a return in addition to the amount of money (principal) invested. Zero principal loss investing is not a new concept. Investing your money in some capacity and earning a yield without the principal going down has been done several times throughout history.

Zero principal loss investing is available in other markets as well. Something such as a Certificate of Deposit (Cd) offers a higher interest rate, however locks your money up for upwards of years, same thing with traditional bonds. Outlet is a product that is very much aligned with the idea of investing without having your principal investment go down.

The pros of Zero principal loss investing

Zero principal loss investing is an attractive type of investment, however your yield is always changing based on the demand for the market you use. Outlet looks at this type of investing as a must have for a certain type of person.

With all of the talks about lowering interest rates, and the stock market tanking depending on the latest Trump tweet there is a lot of volatility in your principal investment when you look to earn a yield in any open market.

The cons of Zero Principal Loss investing

The cons of investing your money this way is that its not for everyone. There are people who want to have a huge return on their money and risk their principal having swings. Investments such as stocks or cryptocurrency can provide you with huge gains but also huge swings to your principal. It comes down to timing and whether that matches with eh time of a return on your investment.

Outlet

Outlet is a new savings app that gives you everything you need to use a zero principal loss investment. The outlet app uses decentralized money markets such as compound.finance to achieve its high yield. These products are another example of this strategy. The idea behind these money markets is to create a no loss experience for the person backing these loans. Another market is still young compared to its legacy finance counterparts it is much more open and transparent than legacy financial versions due to tools such as Etherscan, which allows you to track each and every transaction.

Outlet connects money to money markets that are tied to a zero principal loss strategy. This creates a safe environment for traditional investors to not lose their original investment and feel safe.

We find the same category of customers coming back to Outlet. The investors who can not stand their principal going below what it originally was. Outlet is a tool for people with this mindset. Outlet is creating a way for users to have access to sophisticated financial tools that didn't exist a few years ago.

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