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Post by wayne12 on Sept 21, 2017 9:21:02 GMT
Hello, I just recently started up an account on AC and I've heard some worrying things about the investment accounts level of diversification e.g. 50% of someones money being put into one or two loans. I'm I better off investing manually?
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SteveT
Member of DD Central
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Post by SteveT on Sept 21, 2017 9:28:49 GMT
Hello, I just recently started up an account on AC and I've heard some worrying things about the investment accounts level of diversification e.g. 50% of someones money being put into one or two loans. I'm I better off investing manually? The GBBA / GEIA accounts could potentially put as much as 20% of your funds in that account into any 1 loan (not 50%), but the other issue is that there are very few new loans appearing that are eligible for these accounts so it's likely to take a long time to get your money lent out at all. However, provided you choose to sweep un-lent funds into the QAA, you'll at least be earning 3.75% in the meantime. If I were opening a brand new AC account today, I would stick 80% of my funds into the MLIA and set modest buying targets across 50/100/150 loans, plus 10% each into the GBBA and GEIA, sweeping all un-lent cash into the QAA in the meantime. Then I'd review what AC's automated "shrapnelator" system had managed to pick up for me a week or two down the line and adjust targets / account allocations as appropriate.
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skippyonspeed
Some people think I'm a little bit crazy, but I know my mind's not hazy
Posts: 787
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Post by skippyonspeed on Sept 21, 2017 9:34:37 GMT
I suggest you read through the recent posts and make up your own mind..........there are pros & cons with all accounts.......personally I prefer manual but it takes time to manage it, but I have more control.
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Post by wayne12 on Sept 21, 2017 9:40:52 GMT
Hello, I just recently started up an account on AC and I've heard some worrying things about the investment accounts level of diversification e.g. 50% of someones money being put into one or two loans. I'm I better off investing manually? The GBBA / GEIA accounts could potentially put as much as 20% of your funds in that account into any 1 loan (not 50%), but the other issue is that there are very few new loans appearing that are eligible for these accounts so it's likely to take a long time to get your money lent out at all. However, provided you choose to sweep un-lent funds into the QAA, you'll at least be earning 3.75% in the meantime. If I were opening a brand new AC account today, I would stick 80% of my funds into the MLIA and set modest buying targets across 50/100/150 loans, plus 10% each into the GBBA and GEIA, sweeping all un-lent cash into the QAA in the meantime. Then I'd review what AC's automated "shrapnelator" system had managed to pick up for me a week or two down the line and adjust targets / account allocations as appropriate. Thanks for the advice, I might just do that.
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ant1
Member of DD Central
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Post by ant1 on Sept 21, 2017 11:26:06 GMT
Another newbie here, thanks for the advice, useful to know.
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number5
Member of DD Central
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Post by number5 on Sept 27, 2017 13:35:06 GMT
Hi guys, I am looking to invest in AC...coming from FC.
I am in specific interested in property loans, where the interest payments are already included in the loan amount, theb released to investors monthly.
Also not intending to keep loans for the full term, so that I am not at risk at a default. I.e. flipping at FC at 2 months.
This is was my strategy at FC, I was wondering if this can be mirrored here on AC? Are there any restrictions etc?
Appreciate any advice
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lobster
Member of DD Central
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Post by lobster on Sept 27, 2017 14:00:21 GMT
Hi guys, I am looking to invest in AC...coming from FC. I am in specific interested in property loans, where the interest payments are already included in the loan amount, theb released to investors monthly. Also not intending to keep loans for the full term, so that I am not at risk at a default. I.e. flipping at FC at 2 months. This is was my strategy at FC, I was wondering if this can be mirrored here on AC? Are there any restrictions etc? Appreciate any advice Well there's nothing to stop you trying to sell, but there are no guarantees that you'll find another willing investor prepared to buy you units. You can sell at a discount , if you wish, in order to encourage buyers. Also there is no charge for selling (apart from any discount that you may wish to offer).
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number5
Member of DD Central
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Post by number5 on Sept 27, 2017 14:55:36 GMT
Cheers lobster for your replying re selling...
How about a more explanation in relation to 'witheld interest'....i have read that on some loans?
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jonah
Member of DD Central
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Post by jonah on Sept 27, 2017 19:49:43 GMT
Cheers lobster for your replying re selling... How about a more explanation in relation to 'witheld interest'....i have read that on some loans? For example, in simple numbers, a £100k loan could result in £92k going to the borrower and the other 8k kept by AC to pay to us as interest. It reduces the chances of a default in the middle of the loan, but it is still possible.
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number5
Member of DD Central
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Post by number5 on Sept 27, 2017 20:04:18 GMT
Cheers jonah...
That is exactly what I thought, similar to property loans on FC before. That is what I am looking for.
Have there been any cases of defaults in these type of loans so far?
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