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Post by driain on Sept 22, 2017 19:43:05 GMT
I am actually very happy with my purchases so far under the new system having put in a £1k addition to my wife's account. This has given me 23 loan parts across quite a good balance of risk hands
My question now is if I am to put in a further £9k is it better to put it all in at once or say £1k per week.
Any suggestions with rationale?
DrIain
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david42
Member of DD Central
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Post by david42 on Sept 22, 2017 20:43:07 GMT
There are advantages to both approaches.
If you put the money in all at once you will benefit from Autobid investing it more quickly, because it will buy you 0.5% of your larger balance in each loan and it will accept larger loan parts on the secondary market.
If you drip feed the money you will benefit from a wider spread of loans because in the early weeks Autobid will buy a maximum of 0.5% of a smaller balance in each loan and you will have fewer large loan parts from the secondary market, which might help if you want to sell them later
At the moment Autobid seems to be making most of its purchases on the primary market, where it normally buys 0.5% of your total balance in each loan (cash + loans). When Autobid is buying off the secondary market, it seems to buy a single loan part in each loan, and it will avoid buying any single loan part that would exceed 0.5% of your total balance.
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