How Litigation Funding Compares to Property, Stocks, and Bonds

A detailed comparison of returns, risks, and timelines

When most people think about investing, they typically consider the usual suspects: property, stocks, or bonds. These long-standing options have helped many grow wealth over time, but they are not without limitations. In an environment of economic uncertainty and fluctuating returns, a new opportunity is gaining attention: litigation funding.

This alternative asset class allows investors to support legal claims in exchange for a pre-agreed share of the outcome. It is structured, insulated from market volatility, and can offer superior returns within a relatively short time frame. Here is how it compares to more traditional investment options.

1. Expected Returns

Litigation funding has the potential to deliver much higher returns than conventional asset classes. Depending on when a co-funder joins a claim, returns with 3Pay Global may range from 5 to 75 percent over the life of the case. Early participation usually offers the highest interest rates, while those who enter at a later stage still receive strong returns with reduced risk exposure.

In contrast, property investments often produce annual returns in the range of 7 to 10 percent through capital appreciation and rental income. Stocks may average 6 to 10 percent per year over the long term, but their performance is highly dependent on timing and external events. Bonds tend to deliver 2 to 4 percent annually, which may fall short of inflation-adjusted growth.

Litigation funding stands out by offering fixed, contractual returns not influenced by broader market conditions. Success is tied to the legal merits of the case and the strategy employed, not economic sentiment or stock price volatility.

2. Investment Timeline

Litigation funding provides a clearly defined holding period. With 3Pay Global, most claims conclude within 12 to 24 months, and some settle earlier.  Co-funders have a straightforward commitment with a known exit point: when the case resolves.

Property, by comparison, typically requires a commitment of 5 to 10 years to achieve worthwhile gains. Stocks may also demand long-term holding to smooth out volatility. Bonds come with varying maturities but often span multiple years.

For investors seeking strong returns without tying up capital for a decade, litigation funding offers an efficient, time-bound alternative.

3. Risk Profile and Protection

All investments carry risk, but litigation funding includes several safeguards. At 3Pay Global, every claim is backed by After the Event (A.T.E.) insurance, which covers legal costs if the claim is unsuccessful. This significantly limits downside exposure.

In the property market, investors face risks from declining values, interest rate changes, and liquidity issues. Equity markets are vulnerable to global economic events, corporate performance, and investor sentiment. Even bonds, while considered low risk, can lose value when interest rates rise or inflation climbs.

 

Litigation funding with 3Pay Global benefits from rigorous due diligence, legal insurance, and a selective approach to case vetting. Every party involved, solicitors, barristers, insurers, has a vested interest in success, aligning incentives across the board.

4. Liquidity and Access

While litigation funding requires capital to remain invested until conclusion of a case, the holding period is transparent from the start.  Co-funders can plan accordingly, knowing exactly when they expect a return.

In contrast, property is illiquid and can take months or even years to sell. Stocks offer daily liquidity but may need to be sold at a loss during market dips. Bonds offer moderate liquidity depending on the type and issuer.

Litigation funding may not be instantly liquid, but it offers clarity and predictability. Investors are not at the mercy of daily price fluctuations or volatile market cycles.

5. Independence from Market Volatility

One of the most appealing aspects of litigation funding is its independence from traditional financial markets. Returns are not influenced by interest rates, inflation, or political events. Instead, they are driven by the strength of the legal claim and the effectiveness of the legal team.

Real estate is sensitive to interest rates, local demand, and regulatory changes. Stocks react to everything from earnings reports to global tensions. Bonds are directly affected by central bank policy and inflation expectations.

Litigation funding operates in a separate ecosystem. Its performance is governed by legal timelines and court outcomes, offering a rare level of insulation from external shocks.

A Compelling Alternative

Litigation funding is not a replacement for traditional investments, but it offers a compelling alternative. For investors looking to diversify their portfolio with an asset class that provides high potential returns, a clear timeline, and robust protection, it is well worth consideration.

At 3Pay Global, we make this opportunity accessible with a minimum entry point of just £10,000. Every claim is carefully assessed and supported by leading legal professionals.  Co-funders are not speculating on markets; they are backing strong, well-prepared legal actions with defined outcomes.

Ready to put your capital to work?
Join 3Pay Global today and explore live opportunities that align with your financial goals. Let your investment help drive justice and deliver the kind of returns most markets simply cannot match.

Get in touch with our team today at info@3payglobal.com