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Post by nutfield on Apr 24, 2018 14:29:20 GMT
It seems rather suspicious to me that since Zopa have ditched the provision fund, the returns in terms of interest minus losses seems to have noticeably reduced. Does this mean that since they are gambling with OUR money they have let their standards slip as it doesn't directly cost them money? Have we been left "holding the baby"?
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Apr 24, 2018 16:27:32 GMT
Not sure if the OP question has been answered directly, but with Zopa I would say "Yes, you're giving it away."  I started running down from Zopa about 18 months ago and have got about a fiver left at the mo. VERY happy about that!  |
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Post by df on Apr 24, 2018 16:42:36 GMT
Not sure if the OP question has been answered directly, but with Zopa I would say "Yes, you're giving it away." I started running down from Zopa about 18 months ago and have got about a fiver left at the mo. VERY happy about that! I wouldn't say I was giving it away. I've never invested in Z+, only the other two with PF, and had no loss. I'm running down since Access and Classic were scrapped, still about 2.5k left to go, but I'm not in a rush as the remaining funds are still under PF protection. Very happy about that 
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ashtondav
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Post by ashtondav on Apr 24, 2018 16:47:06 GMT
Similar story here. Of my wife's last six months statements four have shown negative earnings. Overall in six months her 'earnings' have been -£21.49 on an investment of £2000, yet Zopa consistently tells her that her plus account is making 5.1%. Are they totally incompetent or just telling porkies? Nowhere near enough money to make “average” returns. I have £40,000 to £50,000 invested and the returns are spot on. zopa is not open enough about just how much you need to invest to avoid “bad luck”, but I reckon it’s over £20,000. Why they don’t address this is beyond me.
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cb25
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Post by cb25 on Apr 24, 2018 17:48:16 GMT
Similar story here. Of my wife's last six months statements four have shown negative earnings. Overall in six months her 'earnings' have been -£21.49 on an investment of £2000, yet Zopa consistently tells her that her plus account is making 5.1%. Are they totally incompetent or just telling porkies? Nowhere near enough money to make “average” returns. I have £40,000 to £50,000 invested and the returns are spot on. zopa is not open enough about just how much you need to invest to avoid “bad luck”, but I reckon it’s over £20,000. Why they don’t address this is beyond me. I've got more than that in Z+ and my year-to-date returns (OK, rather a short period I admit) are running at around 1.5% APR. Bad debt seemed to spike up Sept 2017 and has yet to go down, always 60%+ of returns. Hence, I'm running the account down as/when money is repaid.
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Post by wyndstryke on Apr 24, 2018 18:04:20 GMT
... zopa is not open enough about just how much you need to invest to avoid “bad luck”, but I reckon it’s over £20,000. Why they don’t address this is beyond me. There's also diversification to worry about. If the 20k was invested all in one chunk then you'd still only get 100 loans and suffer just as much from potential bad luck as the person who put in £1k. I'd say £10k in £10 loans invested over the course of a year is probably enough to be reasonably close to the average. Back prior to the introduction of safeguard, diversification used to be a big topic of conversation on the forums and there was advice on Zopa's website about it. But the advice has mostly disappeared and people forget.
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benaj
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Post by benaj on Apr 24, 2018 18:32:18 GMT
The only thing i have learnt for investing in Zopa is their VC backers.
They made much more profits than Zopa plus projected return. It's better to have a piece of Zopa.
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zlb
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Post by zlb on Apr 24, 2018 19:16:43 GMT
Similar story here. Of my wife's last six months statements four have shown negative earnings. Overall in six months her 'earnings' have been -£21.49 on an investment of £2000, yet Zopa consistently tells her that her plus account is making 5.1%. Are they totally incompetent or just telling porkies? This experience sounds poor. Although no one would recommend putting all in Plus, some earlier in this thread have found that it was Core B loans which were causing issue at one point. The diversification of 2000 if deposited as one lump sum would be loans of £20; eventually loans all become £10 each as borrowers pay back and the money is reinvested. If the account statement is downloaded as excel, it shows exactly what has been wiping out the monthly earnings. The announcement that Z makes in their emails is an average isn't specific to each lender. I have too-large loan chunks which when they default, halve or wipe out my monthly earning. However, the next month there may be no defaults or much smaller ones, and then the next month another £50 is in default. I'm waiting for my loan chunks to filter out to £10.
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Post by yorkman on Apr 25, 2018 4:47:06 GMT
Similar story here. Of my wife's last six months statements four have shown negative earnings. Overall in six months her 'earnings' have been -£21.49 on an investment of £2000, yet Zopa consistently tells her that her plus account is making 5.1%. Are they totally incompetent or just telling porkies? The above comments are all interesting but they still don't address the main issue of how Zopa calculates that a negative return over a six-month period is a 5.1% return. Perhaps someone can show the maths.
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ashtondav
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Post by ashtondav on Apr 25, 2018 6:07:00 GMT
The only thing i have learnt for investing in Zopa is their VC backers. They made much more profits than Zopa plus projected return. It's better to have a piece of Zopa. Er, no it’s not. Read the accounts. Zopa rarely makes a profit, despite being 13 years old.
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ashtondav
Member of DD Central
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Post by ashtondav on Apr 25, 2018 6:10:56 GMT
Similar story here. Of my wife's last six months statements four have shown negative earnings. Overall in six months her 'earnings' have been -£21.49 on an investment of £2000, yet Zopa consistently tells her that her plus account is making 5.1%. Are they totally incompetent or just telling porkies? The above comments are all interesting but they still don't address the main issue of how Zopa calculates that a negative return over a six-month period is a 5.1% return. Perhaps someone can show the maths. Ok you guys have convinced me that I must be the only Zopa lender making the 5% return. Well me and the thousands who don’t post here. At least I’m assuming that is why Zopa continues continues to lend £80m per month. Either that or the other punters are rather silly. As stated I have been withdrawing repayments for over a year because rates are too low - not because Zopa are failing to deliver them.
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benaj
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Post by benaj on Apr 25, 2018 6:13:10 GMT
The only thing i have learnt for investing in Zopa is their VC backers. They made much more profits than Zopa plus projected return. It's better to have a piece of Zopa. Er, no it’s not. Read the accounts. Zopa rarely makes a profit, despite being 13 years old. That's all the accounting, doesn't mean their backers not making profit. I have seen many companies not making profits but thier creditors are.
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dandy
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Post by dandy on Apr 25, 2018 8:32:54 GMT
The only thing i have learnt for investing in Zopa is their VC backers. They made much more profits than Zopa plus projected return. It's better to have a piece of Zopa. Er, no it’s not. Read the accounts. Zopa rarely makes a profit, despite being 13 years old. and despite that they are valued at ~ £400m! I'd certainly like a piece
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ashtondav
Member of DD Central
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Post by ashtondav on Apr 25, 2018 20:57:48 GMT
Er, no it’s not. Read the accounts. Zopa rarely makes a profit, despite being 13 years old. That's all the accounting, doesn't mean their backers not making profit. I have seen many companies not making profits but thier creditors are. Er, yes it does! Zopa has not been floated so no return via share issue. Zopa does not pay a dividend to the VLC backers so no return there. To be bloody honest zopa’s Backers are showing a lot of patience because they have seen no return yet. FACT.... what on on earth do you mean by creditors? Do you not understand that the VC backers are not creditors?
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cb25
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Post by cb25 on May 1, 2018 7:39:18 GMT
Year to date I've made £157 on a balance that's always been above £65K, account started in Sept 2016. That's about 1% APR.
First 7 months of 2017 (account relatively new): losses averaged 23.8% of interest
The last 8 months (4 in 2017, 4 in 2018): losses have averaged 81.4% of interest
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