stevio
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Post by stevio on Jun 6, 2016 7:37:13 GMT
With the number of loans on Ablrate being a fair bit less than some other platforms, my diversification at Ablrate is quite poor. I'm in 9 loans, but 3 of those loans take up 75% of the funds I have on this platform.
This has mainly due to the variation in rates on offer and putting considerably more in the higher rate loans. But also personally having lump sums at unusual time periods and not having the patience to wait to invest!
Have others managed to get more diversified on Ablrate or is this a similar situation for others?
Also due to the constant flow of interest but not always the availability of new loans or suitable secondary market loans - do most withdraw their returns and invest elsewhere or reinvest in Ablrate?
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pom
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Post by pom on Jun 6, 2016 8:21:09 GMT
I'm in 16 loans (after approx 1yr) tho my investments aren't exactly even, partly because I realised about 6 months ago that to get my target amount invested I'd need to increase my amount per loan and have also gone for a larger than (my) average stake in containers. I bought quite a lot on the SM when I first started, and until recently had been reinvesting repayments in the SM. Now if there's a new loan open and I'm comfortable to increase my holding I'll trickle repayments into those but am considering only withdrawing repayments otherwise from now on in an effort to reduce the number/frequency of shrapnel transactions until I've fully got my head around the tax reporting (as I'll have to fill out the CGT pages). Plus whilst I still want to increase my holding, I'm starting to feel happy about the amount I have invested and there's been just about enough stuff over the last 6 months that I no longer feel quite so desperate to get more money into the platform as I did then!
But I'm looking forward to there being more loans to diversify into, specially as 4 of mine will be repaying in the next few months.
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jimbob
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Post by jimbob on Jun 6, 2016 8:44:17 GMT
Here is mine, ablrate is just over 6% of the total book.  |
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blender
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Post by blender on Jun 6, 2016 10:29:16 GMT
As Jimbob's example shows, it's not diversity within Ablrate which is important but rather diversity over all loans. Jimbob's Ablrate loans do not really exceed 1%.
I am sure that we all have an idea of how much we will commit to a single loan, and maybe that depends on security and intended length of holding. Personally I have rather too much in each of a few Ablrate loans, and if there were more loans coming up that would allow me to move more funds into Ablrate. I like the diversity in asset classes which Ablrate offers (having too much in property elsewhere).
More loans would also confirm my confidence in Ablrate's future viability as a platform. I am not so concerned with platform diversity on principle as I am with sticking to platforms which are at least an order of magnitude safer that the loans on it, preferably two orders. FC for example is now as safe as houses and banks, if increasingly boring without the IFISA. I do not think Ablrate is there yet, but the commitment is there.
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duck
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Post by duck on Jun 6, 2016 10:47:30 GMT
I am in 15 loans over 3 accounts (personal wife and business).
If I total the amount in each loan and then divide by my total investment (I hold some investments in one or more accounts) 26% in one loan is my highest %. I consciously went high on that loan, the remainder are in the 5-10% range
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