bb74
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Post by bb74 on Jan 1, 2017 23:47:18 GMT
Hello all and a Happy New Year to you.
I'm a long time lurker and last August I made my first dip in p2p by using the auto invest accounts, as I don't have the time to study manually.
I put a small amount in Zopa and Assetz Capital, mainly just to build up confidence, and as a lesson into how P2P works. I've since pulled the money from Zopa and put it all into AC - Zopa is so frustrating!!
Anyway, I'm looking for suggestions please on what to do with a modest £100 per month? What would some of the more experienced and seasoned investors do with that and how much would you put into each platform?
I just can't seem to make up my mind on how thinly to spread. I.e throw it all into AC or split it across 5 platforms at £20 each. I realise these are probably small amounts to some of you but I'm just learning and building confidence at the moment and any suggestions or tips would be most helpful.
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fp
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Post by fp on Jan 1, 2017 23:54:46 GMT
Hello all and a Happy New Year to you. I'm a long time lurker and last August I made my first dip in p2p by using the auto invest accounts, as I don't have the time to study manually. I put a small amount in Zopa and Assetz Capital, mainly just to build up confidence, and as a lesson into how P2P works. I've since pulled the money from Zopa and put it all into AC - Zopa is so frustrating!! Anyway, I'm looking for suggestion ps on what to do with a modest £100 per month? What would some of the more experienced and seasoned investors do with that and how much would you put into each platform? I just can't seem to make up my mind on how thinly to diversify. I.e throw it all into AC or split it across 5 platforms at £20 each. I realise these are probably small amounts to some of you but I'm just learning and building confidence at the moment and any suggestions or tips would be most helpful. Welcome to the forum  What level of return are you looking for?
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bb74
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Post by bb74 on Jan 1, 2017 23:58:28 GMT
Thank you I have a regular saver with HSBC which I pay the maximum into per month and that currently returns me 6% although it is changing to 5% hence me looking to move more into p2p. My current AC investments are 7% and I wouldn't really want to go below say 6.5% on average using auto invest. |
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fp
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Post by fp on Jan 2, 2017 0:07:53 GMT
I'm sure many suggestions will come, but I use Bondmason for a small piece of mine, current return is 8.46% on one count and 7.69% on my better halves account, this is after the 1% fee. As with anything, it has its pros and cons, But communication is good, you have a diversified loan book and for a hands off approach the returns in my opinion are decent, take a look at their sub board: p2pindependentforum.com/board/94/bondmason |
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Post by sannytwist on Jan 2, 2017 3:24:03 GMT
See the big wealthy individuals who bid +£25,000 and even seen a few £100,000 bids before on loans. What do you think their strategy is? do they hold for a few months and then sell out or
Any opinions would be appreciated.
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Post by petebutt43 on Jan 2, 2017 6:27:28 GMT
Thank you I have a regular saver with HSBC which I pay the maximum into per month and that currently returns me 6% although it is changing to 5% hence me looking to move more into p2p. My current AC investments are 7% and I wouldn't really want to go below say 6.5% on average using auto invest. 6% on a saver account! That is phenomenal! Leave what you have in there and start fresh with P2P, to spread your risk. The HSBC will be very low risk and P2p will be medium risk at best, depending on where you lodge it. Assetz have a reasonable record, as do Savingstream and Thincats. There are so many to choose from. Risk is usually the decider - can the platform recover capital when a loan defaults?. Most have difficulty unless they are operating like a pawn shop, CollateralUK for instance, where security is physically lodged with the platform. Criteria: 1.Risk - how likely are you to see your capital returned if the loan defaults. 2.Return - ties in with risk - generally lower perceived risk is lower return 3.Security - Try to avoid personal guarantees, they are worthless in a court of law, where defaulted loans usually end up. Go for security on property - either high value items lodged with the platform or FIRST debenture on houses, buildings or land. 4. Ease of use - is there an auto lend function? Some platforms do automatic portfolios and others do pre-funding, like SavingStream. Personally I avoid the fully automatic ones. Filters are also a good feature of some platforms, giving you the choice of what you want, removing those that don't meet your criteria - Mintos for example. 5. If you look further afield into Europe - Mintos have a guaranteed capital return if a loan goes into default more than 60 days (available on selected loans) and also have an excellent secondary market, which will remove dead-time, where money is not earning interest and also has a VERY small minimum buy. Happy New year and Happy lending!
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Post by petebutt43 on Jan 2, 2017 6:56:34 GMT
Thank you I have a regular saver with HSBC which I pay the maximum into per month and that currently returns me 6% although it is changing to 5% hence me looking to move more into p2p. My current AC investments are 7% and I wouldn't really want to go below say 6.5% on average using auto invest. Further to my previous: a list of what is available that I have knowledge of: Savingstream - security on property - 10%+ Thincats - business loans - various security (sometimes not the best) - auction but usually 10%+ - 1000 minimum Assetz - various security (sometimes not the best) - all underwritten so immediate returns - easy to sell or buy (if others are buying or selling) - excellent secondary account options with varying degrees of capital protection Moneything - business / property development loans - good security - VERY sought after, most loans fill VERY quickly - 10%+ - no automatic features. CollateralUK - pawnbroker style - very good security but with EXCELLENT returns - 10%+ - Also very sought after and fill with lightning speed, even V.large loans. No automatic features - be there or be square. Fundingsecure - mix of property and business - reasonable security - no automatic features - V.good returns at 12%+ on average. Rebuildingsociety - business loans - usually dodgy security like PGs - good returns when not in default 16% - 20% - no automatic features. - If you try this one pick and choose and only bid the minimum 10quid at just below the highest rate shown to guarantee a successful bid. ABLrate - Aviation / property / business - professionally run with good security and excellent rates - 10-14% - no automatic features and confusing secondary market Just some of many
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star dust
Member of DD Central
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Post by star dust on Jan 2, 2017 7:04:14 GMT
Thincats wouldn't be much use to you as I believe their minimum investment is £1000 per loan, neither would Bridgecrowd where the minimum investment is £5000 per loan. Sites like Saving Stream (SS), Collateral and MoneyThing (MT) allow very small investments, down to a penny in SS and Collateral but no pence only £1 min in MT. However, SS is the only one with a pre-fund (minimum £100, but you could just sell off some immediately each time), the others rely on being on-line at a fixed time for new loans. I would suggest diversifying across loans on a platform either automatically (platform blended) or manually, although I wouldn't get too hung up about the number of platforms myself. However, if your cash isn't really 'spare' or you cannot afford to lose (all or some) of your investment I'm not sure I would recommend P2P. There are other high street banks that offer regular savings accounts of 5%, Nationwide has one offering 5% on max £500 pm for example, most of these may be time limited (one year only) and require opening more bank accounts and swirling your money around from one to the other each month, but I'd suggest you max all those out first before putting anything left into P2P. In Edit: X-posted with petebutt43 about the Thincats minimum investment level. |
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archie
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Post by archie on Jan 2, 2017 8:07:16 GMT
Regular savers pay roughly half the headline rate because only the first months money is there for the whole year.
I'd suggest Bondmason for diversity or possibly Collateral (pawn loans) if you want a hands on approach.
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jonah
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Post by jonah on Jan 3, 2017 6:42:10 GMT
Regular savers pay roughly half the headline rate because only the first months money is there for the whole year. Whilst the above is true... the same logic applies to peer to peer in that you only get interest on cash invested. £100 per month going into for example AC QAA @3.75% would earn less after a year than going into the 5% nationwide regular saver account mentioned above. For people at the smaller end of the 'amount to invest' scale, I would suggest filling at least one if not several of the 5% Fscs supported regular savers first (there are 4 currently available) after having the normal 3-6-12 months cash on hand for living expenses. Only after both of those are done would I consider investing in products which could have up to 100% capital loss.
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Post by sannytwist on Jan 3, 2017 7:45:13 GMT
when you put it like that , it really confuses me how rich someone can be to invest £100,000's on some of these p2p platforms
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archie
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Post by archie on Jan 3, 2017 7:51:14 GMT
Regular savers pay roughly half the headline rate because only the first months money is there for the whole year. Whilst the above is true... the same logic applies to peer to peer in that you only get interest on cash invested. £100 per month going into for example AC QAA @3.75% would earn less after a year than going into the 5% nationwide regular saver account mentioned above. For people at the smaller end of the 'amount to invest' scale, I would suggest filling at least one if not several of the 5% Fscs supported regular savers first (there are 4 currently available) after having the normal 3-6-12 months cash on hand for living expenses. Only after both of those are done would I consider investing in products which could have up to 100% capital loss. The difference is a regular saver ends after a year so you can never get the headline rate. I think these are misleading. The P2P investment could potentially keep going for much longer. For each sum invested, after a year you would get the headline rate (assuming no losses). I was suggesting a higher percentage product to offset the risk. While I wouldn't invest in a regular saver myself, I do agree it's a much safer option and more suitable for those with smaller sums to invest.
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SteveT
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Post by SteveT on Jan 3, 2017 8:01:17 GMT
when you put it like that , it really confuses me how rich someone can be to invest £100,000's on some of these p2p platforms If they're following a similar 1% diversification strategy then around £10million. At 2% diversification then £5million, or £3.3m at 3%. However I recall a previous thread where one forum BH made the case that splitting £1m across 10 good loans on FS (earning 16-17% at bonus rates) was a better strategy than diversifying more widely at lower rates.
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james
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Post by james on Jan 3, 2017 10:18:00 GMT
I'm no big hitter by typical definitions but I have and will continue to lend 5% or sometimes more of my total investable assets in one loan or to one borrower across many loans where the deal seems good enough. In one case I put perhaps 10% into one secured loan paying 1.5% a month on a beta deal. I took the view that the security and circumstances were worthwhile for the amount involved. I don't typically do this, takes interesting loan properties, not always higher interest rate.
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jonah
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Post by jonah on Jan 3, 2017 19:28:39 GMT
The difference is a regular saver ends after a year so you can never get the headline rate. Whilst I agree they end, you do get the headline rate else it would be fraudulent. You only get it for cash you have invested to that point. But you get the full rate for the cash which was invested.
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