zlb
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Post by zlb on Jan 22, 2019 20:16:24 GMT
I have returns on £100 invested exactly two calendar months ago. At 10-15% the site reports 5% return on this. Two months is a bit on the short side though. I ran my own calculation and make it 4.92% rather than 5% (0.82/2*12. And 4.9% if 0.82/61*365). £0.82 earned, over 61 days. The other blocks of £100 that I have are not worth averaging. I'm guessing that I'll get more than 4.92% in the end...? nsiam, it would be helpful to have some help on the figures given, vs the expected. I'd think that most would expect capital and full interest with how Welendus operates currently with the 35 day limit, and bonus payment for interest. How would differences occur? Investment drag through early repayment?? Thanks.
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Post by Proptechfish on Jan 22, 2019 20:31:10 GMT
zlb If you are counting exactly 2 months today then you wouldn't have had your PF bonus for (3 weeks of) January yet, could explain the difference.
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Post by sayyestocress on Jan 23, 2019 9:07:57 GMT
...I'm guessing that I'll get more than 4.92% in the end...? ... I don't think two months is a long enough time period to annualise in a meaningful way as the initial cash drag may have a big influence on the returns at that point, and should only decrease as the year goes on. Two months is also shorter than the average loan duration (~ 3 months) which probably won't help either. As long as the PF works and the 'bonus' payouts keep coming then there should be no reason (as far as I'm aware) for the return not to be in the same ball park as your lending offer rates
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benaj
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Post by benaj on Jan 23, 2019 13:01:31 GMT
Well, I started investing with £100 back in June'18, I didn't realise Welendus was something else compared to the most well known Zopa / Ratesetter. Because of Welendus lending model, some loans get fully repaid very early, some gets interest payment after a few days, some may miss the schedule repayment and the PF bonus will be paid back after borrowers make a repayment, it takes a few months to see actual welednus returns. My longest completed loan is 154 days, borrower repaid 5.3% interest.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jan 23, 2019 13:58:13 GMT
Well, I started investing with £100 back in June'18, I didn't realise Welendus was something else compared to the most well known Zopa / Ratesetter. Because of Welendus lending model, some loans get fully repaid very early, some gets interest payment after a few days, some may miss the schedule repayment and the PF bonus will be paid back after borrowers make a repayment, it takes a few months to see actual welednus returns. My longest completed loan is 154 days, borrower repaid 5.3% interest. Did they or is that just the rate WL are showing? I also have a loan 154 days, £10, 53p interest, rate 5.3% but thats not the AER. Merely interest divided by principle, no factoring in the time.
AER is ((£0.53/154)*365)/10% = 12.56% ie the given rate.
I dont think WL actually display info that equates to AER in some places, or XIRR in others. On the individual loans it is merely a crude interest/principle, on the investments it appears to be AER but that is distorted by additional funds being added to an investment
eg Investment £150 return given 5.65%pa which is ((interest/term)*365)/150%. However, £50 was only added yesterday so the true return is ((interest/term)*365)/100% =8.46%, add in PF bonus & its 12.63%
Unlike others I dont seems to be suffering from cash drag. Repayments are re-invested promptly and my last two top ups have been invested with 48hrs over the weekend and under 24hrs yesterday. No idea what I am doing differently to achieve this.
Edit top-ups to existing investments, not newly created
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markyg61
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Post by markyg61 on Jan 23, 2019 15:07:18 GMT
I've started off small by investing little and often, typically £100 every other day. With a total of £2k now invested, I've seen little to no cash drag. £100 deposited in the morning, all lent out by late afternoon or early evening same day. It works for me.
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Post by gravitykillz on Jan 23, 2019 15:32:05 GMT
I've started off small by investing little and often, typically £100 every other day. With a total of £2k now invested, I've seen little to no cash drag. £100 deposited in the morning, all lent out by late afternoon or early evening same day. It works for me. What interest rates did you choose ?
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markyg61
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Post by markyg61 on Jan 23, 2019 15:45:03 GMT
I've started off small by investing little and often, typically £100 every other day. With a total of £2k now invested, I've seen little to no cash drag. £100 deposited in the morning, all lent out by late afternoon or early evening same day. It works for me. What interest rates did you choose ? Four investments all set the same at 9.5% to 15% but never more than £100 available across the four investments, if you get what I mean.
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Post by gravitykillz on Jan 23, 2019 16:11:57 GMT
I deposited 150 last night. At rates between 11.5 to 15%. 135 still in the queue only 15 lent so far.
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benaj
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Post by benaj on Jan 23, 2019 17:33:17 GMT
Well, I started investing with £100 back in June'18, I didn't realise Welendus was something else compared to the most well known Zopa / Ratesetter. Because of Welendus lending model, some loans get fully repaid very early, some gets interest payment after a few days, some may miss the schedule repayment and the PF bonus will be paid back after borrowers make a repayment, it takes a few months to see actual welednus returns. My longest completed loan is 154 days, borrower repaid 5.3% interest. Did they or is that just the rate WL are showing? I also have a loan 154 days, £10, 53p interest, rate 5.3% but thats not the AER. Merely interest divided by principle, no factoring in the time. AER is ((£0.53/154)*365)/10% = 12.56% ie the given rate. I dont think WL actually display info that equates to AER in some places, or XIRR in others. On the individual loans it is merely a crude interest/principle, on the investments it appears to be AER but that is distorted by additional funds being added to an investment eg Investment £150 return given 5.65%pa which is ((interest/term)*365)/150%. However, £50 was only added yesterday so the true return is ((interest/term)*365)/100% =8.46%, add in PF bonus & its 12.63%
Unlike others I dont seems to be suffering from cash drag. Repayments are re-invested promptly and my last two top ups have been invested with 48hrs over the weekend and under 24hrs yesterday. No idea what I am doing differently to achieve this. Edit top-ups to existing investments, not newly created
Call that lucky. I have cash stuck in 2 investments from repayments for 30 days before lent out recently. One of my investments have repayments lent to new loan on the same day. Overall, cashdrag ranges from 31% to 0.3%. I come to an conclusion my portfolio is "messed" up and needs a "reconstruction".
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Post by Badly Drawn Stickman on Jan 23, 2019 19:10:15 GMT
Well, I started investing with £100 back in June'18, I didn't realise Welendus was something else compared to the most well known Zopa / Ratesetter. Because of Welendus lending model, some loans get fully repaid very early, some gets interest payment after a few days, some may miss the schedule repayment and the PF bonus will be paid back after borrowers make a repayment, it takes a few months to see actual welednus returns. My longest completed loan is 154 days, borrower repaid 5.3% interest. Did they or is that just the rate WL are showing? I also have a loan 154 days, £10, 53p interest, rate 5.3% but thats noby t the AER. Merely interest divided principle, no factoring in the time.
AER is ((£0.53/154)*365)/10% = 12.56% ie the given rate.
I dont think WL actually display info that equates to AER in some places, or XIRR in others. On the individual loans it is merely a crude interest/principle, on the investments it appears to be AER but that is distorted by additional funds being added to an investment
eg Investment £150 return given 5.65%pa which is ((interest/term)*365)/150%. However, £50 was only added yesterday so the true return is ((interest/term)*365)/100% =8.46%, add in PF bonus & its 12.63%
Unlike others I dont seems to be suffering from cash drag. Repayments are re-invested promptly and my last two top ups have been invested with 48hrs over the weekend and under 24hrs yesterday. No idea what I am doing differently to achieve this.
Edit top-ups to existing investments, not newly created
The edit is interesting, I have been adding funds only by credit debit card and each deposit creates a 'new investment'. ilmoro are you suggesting there is a way to just increase existing? Would be much neater long term.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jan 23, 2019 19:22:16 GMT
Did they or is that just the rate WL are showing? I also have a loan 154 days, £10, 53p interest, rate 5.3% but thats noby t the AER. Merely interest divided principle, no factoring in the time.
AER is ((£0.53/154)*365)/10% = 12.56% ie the given rate.
I dont think WL actually display info that equates to AER in some places, or XIRR in others. On the individual loans it is merely a crude interest/principle, on the investments it appears to be AER but that is distorted by additional funds being added to an investment
eg Investment £150 return given 5.65%pa which is ((interest/term)*365)/150%. However, £50 was only added yesterday so the true return is ((interest/term)*365)/100% =8.46%, add in PF bonus & its 12.63%
Unlike others I dont seems to be suffering from cash drag. Repayments are re-invested promptly and my last two top ups have been invested with 48hrs over the weekend and under 24hrs yesterday. No idea what I am doing differently to achieve this.
Edit top-ups to existing investments, not newly created
The edit is interesting, I have been adding funds only by credit debit card and each deposit creates a 'new investment'. ilmoro are you suggesting there is a way to just increase existing? Would be much neater long term. Yes, just deposit funds then go to modify an existing investment and add unassigned funds. You can add any amount, though it will modify your diversification settings accordingly so make sure you check those afterwards. (NB if you set it below the allowed parameters it sometimes resets it to min diversification rather than max ie big chunk per loan)
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benaj
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Post by benaj on Jan 23, 2019 19:48:23 GMT
The edit is interesting, I have been adding funds only by credit debit card and each deposit creates a 'new investment'. ilmoro are you suggesting there is a way to just increase existing? Would be much neater long term. Yes, just deposit funds then go to modify an existing investment and add unassigned funds. You can add any amount, though it will modify your diversification settings accordingly so make sure you check those afterwards. (NB if you set it below the allowed parameters it sometimes resets it to min diversification rather than max ie big chunk per loan) Well, there is disadvantage of having single "investment" on this platform, unless Welendus implements a new feature. At the moment, there is no way to withdraw a portion of a single "investment". Say if someone would like to withdraw 50% of "investment", the only way is to sell the entire "investment". It's not ideal losing accrued interest to get 50% of a single investment and reinvest the rest as new "investment". It is also equally disappointing there's no option to stop reinvest and withdraw repayment from borrowers. May be nsiam can address this. Until something is implemented, I am setting mine just to prepare different scenarios.
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Ukmikk
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Post by Ukmikk on Jan 24, 2019 9:16:32 GMT
Yes, just deposit funds then go to modify an existing investment and add unassigned funds. You can add any amount, though it will modify your diversification settings accordingly so make sure you check those afterwards. (NB if you set it below the allowed parameters it sometimes resets it to min diversification rather than max ie big chunk per loan) Well, there is disadvantage of having single "investment" on this platform, unless Welendus implements a new feature. At the moment, there is no way to withdraw a portion of a single "investment". Say if someone would like to withdraw 50% of "investment", the only way is to sell the entire "investment". It's not ideal losing accrued interest to get 50% of a single investment and reinvest the rest as new "investment". It is also equally disappointing there's no option to stop reinvest and withdraw repayment from borrowers. May be nsiam can address this. Until something is implemented, I am setting mine just to prepare different scenarios. Thank you for highlighting this benaj. There are so many limitations and things to think about on this platform. It's a shame that nsiam is so reticent about clarifying and discussing the issues raised. Functionality improvements have been hinted at but no timescales given, which is surprising given they claim to be primarily a tech company (which might explain the absence of customer service focus).
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zlb
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Post by zlb on Jan 24, 2019 19:23:10 GMT
In their stats it says that they have no defaults, if that's correct, then aren't returns impinged by implications of early repayment, only, at the moment?
Information about Welendus 2019 Accumulative Total Amount Lent (£GBP) £1.8M Average Loan Term 95 days Actual Average Default Rate 0.0% Target Average Default Rate 10% Provision Fund Coverage 100.3%
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