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Post by robberbaron on Sept 21, 2017 9:35:01 GMT
I am looking at diversifying my IFISA portfolio and I couldn't find any IFISA review thread so I thought I'd start one. AbundancePros:- Green SMEs so good for diversification
- Modern website
Cons:- No loans at the moment and no pipeline
- SM illiquid and hard to use effectively
Status: Reducing due to cash drag and the cashback has ended Recommendation: Avoid Funding Secure
Pros:
- Lots of new loans on a daily basis
- Some non-property pawnbroker loans. Good for diversification.
Cons:- Somewhat illiquid SM
- Interest only paid at maturity so no compounding.
Status: Stable due to platform diversification.
Recommendation: Invest
Proplend Pros:- Different tranches with different LTVs
Cons:
- No new loans
- Illiquid SM
- Minimum investment £5000 for old loans and £1000 for new ones.
Status: Stable due to no better alternative yet. Recommendation: Wait for more loans |
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fp
Posts: 1,008 
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Post by fp on Sept 21, 2017 10:56:16 GMT
Take a look at landlordinvest, slow loan pipeline, but some not bad loans available from time to time, comms are good and the platform listen to what you have to say.
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ceejay
Posts: 975
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Post by ceejay on Sept 21, 2017 16:04:23 GMT
If the emphasis is on "diversifying" your IFISA portfolio then you're somewhat limited before you start, since each individual is only allowed one IFISA per FY. If diversification is the key, then wouldn't you be better looking at traded funds within a S&S ISA? Another consideration for me is that if the point of using an ISA is to reduce tax, then it makes sense to apply one's allowance to the high risk/high return end of ones portfolio: hence cash ISAs are a waste of time, but also any "low(er) risk/return" P2P such as, say, Zopa or Ratesetter (when they finally get round to doing an IFISA) would not IMHO be a good use of the allowance. I did look at Octopus Choice and that was one of the reasons I rejected them for my IFISA (the other being that I didn't like having no control over loans and in particular their duration). I've ended up with ablrate for my IFISA for this year, and if they get round to it in time I might consider Assetz for my other half's. See p2pindependentforum.com/thread/7741/fca-authorised-ifisa-list |
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IFISAcava
Member of DD Central
Posts: 3,692
Likes: 3,018
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Post by IFISAcava on Sept 21, 2017 20:26:43 GMT
If the emphasis is on "diversifying" your IFISA portfolio then you're somewhat limited before you start, since each individual is only allowed one IFISA per FY. If diversification is the key, then wouldn't you be better looking at traded funds within a S&S ISA? Another consideration for me is that if the point of using an ISA is to reduce tax, then it makes sense to apply one's allowance to the high risk/high return end of ones portfolio: hence cash ISAs are a waste of time, but also any "low(er) risk/return" P2P such as, say, Zopa or Ratesetter (when they finally get round to doing an IFISA) would not IMHO be a good use of the allowance. I did look at Octopus Choice and that was one of the reasons I rejected them for my IFISA (the other being that I didn't like having no control over loans and in particular their duration). I've ended up with ablrate for my IFISA for this year, and if they get round to it in time I might consider Assetz for my other half's. See p2pindependentforum.com/thread/7741/fca-authorised-ifisa-list you can have more than one by transferring previous years' cash or S&S ISAs in. so you can diversify - I have 14 IFISAs (smallish six figure sum total)!
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IFISAcava
Member of DD Central
Posts: 3,692
Likes: 3,018
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Post by IFISAcava on Sept 21, 2017 20:40:25 GMT
My 14 holdings are in:
Crowdstacker
Lending Crowd Growth
Landlord Invest
Lending Works
Crowd2fund
Abundance
Basset and Gold
PropLend
Relendex
Property Crowd
HNW
Goji
ABLRate
Funding Secure
Plus Capital Rise open just waiting for the next investment opportunity to transfer in.
Will also open (and transfer money into) AC, MT and FC when they open, hopefully all later in the tax year
So aiming for 18.
However, plan is to transfer ISA money OUT of my second biggest holding FS (probably into AC/MT/FC when they open) as the FS model (if selling before term) allows major tax saving without resorting to the ISA, so the ISA wrapper is somewhat wasted.
Biggest holding (quarter of total) is in HNW so far.
Average headline return (pre-losses) currently 9.2%. Likely to hit 10% when newer high return platforms open. I'll be happy with a real world return of 8% (equivalent to 14.5% for a 45% taxpayer).
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bababill
Member of DD Central
Posts: 529
Likes: 245
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Post by bababill on Sept 23, 2017 5:39:54 GMT
I am looking at diversifying my IFISA portfolio and I couldn't find any IFISA review thread so I thought I'd start one.
Prolend
Pros:- Different tranches with different LTVs
Cons:
- No new loans
- Illiquid SM
- Minimum investment £5000 for old loans and £1000 for new ones.
Status: Stable due to no better alternative yet. Recommendation: Wait for more loans I presume you are referring to Proplend. Why do you say SM is illiquid? I have always been able to sell loans in 24-48 hours no problem. Have things changed recently as I have not chosen to sell any in a while?
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agent69
Member of DD Central
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Post by agent69 on Sept 23, 2017 8:54:54 GMT
If people are looking for diversification within a platform, where is the best value for money?
Too many of the platforms have too few loans to achieve meaningful diversity in anything like a reasonable timescale. I wouldn't mind investing when AC's offering arrives but it is going to take an age to get meaningful amounts loaned out.
I fear a significant amount of my maturing fixed rate cash ISA may be heading FC's way. While historically I've not been a fan, you can't argue that they know how to get business through the door, and have been around long enough to accurately predict what returns will be.
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Post by proplend on Sept 25, 2017 15:40:04 GMT
I am looking at diversifying my IFISA portfolio and I couldn't find any IFISA review thread so I thought I'd start one.
Prolend
Pros:- Different tranches with different LTVs
Cons:
- No new loans
- Illiquid SM
- Minimum investment £5000 for old loans and £1000 for new ones.
Status: Stable due to no better alternative yet. Recommendation: Wait for more loans I presume you are referring to Proplend. Why do you say SM is illiquid? I have always been able to sell loans in 24-48 hours no problem. Have things changed recently as I have not chosen to sell any in a while? The liquidity of our secondary market does indeed average 1-2 days Bababill. Nearly £5.5m transacted through the PLE this year . 1-2 new loan investment opportunities each month since ISA launch - now over £25m property-backed lending facilitated. Most loans on the platform are now £1,000 - only one legacy loan with a £5k minimum. I'm hoping that our no defaults/losses to date and IFISA being flexible are seen as Pros in addition to the risk-adjusted returns from our different LTV tranches? Richard
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Post by stevebarryifa on Sept 26, 2017 9:02:51 GMT
I'm a big fan of Relendex personally, they seem to have it figured out
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Post by robberbaron on Sept 27, 2017 16:31:43 GMT
If the emphasis is on "diversifying" your IFISA portfolio then you're somewhat limited before you start, since each individual is only allowed one IFISA per FY. Not if you are transferring old ISA funds. You can open as many IFISA as you want but only fund one with this year ISA allowance. I already have S&S ISAs in fact that's where my funds come from. I'm trying to diversify away from shares since that's also where my pension is invested. I would say from a tax point of view you are better off putting your P2P investment into IFISA since otherwise you'd pay tax at your marginal income tax rate and put your shares/funds outside since you have a £5000 dividend allowance + capital gain allowance every year. Of course there is always a chance the commies will win the next election then there will be no safe hiding place.
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Post by robberbaron on Sept 27, 2017 18:46:59 GMT
I presume you are referring to Proplend. Why do you say SM is illiquid? I have always been able to sell loans in 24-48 hours no problem. Have things changed recently as I have not chosen to sell any in a while? That is true but liquidity goes both way. If you can sell easily but not buy then the market is illiquid. This is more a con for the new investor who wants to diversify on Proplend but can't because there are no loans or the parts are too large.
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