Have any of you actually lost money investing in P2P?

Steve

I am pleased to hear an IFA taking an interest in peer to peer.  When I am feeling cynical I wander whether some IFA's might steer clear of peer to peer because they don't understand it and it is easier just to condemn the sector as too risky ... or maybe they are right.

I have been investing with peer to peer for about three years, and I still don't know whether I will come out with a profit.  Although my 10% pa returns to date significantly outweigh my 1% pa of realised losses on all but one platform, too much of my capital is tied up in loans that I could not immediately cash in.  It is too soon to judge how many of those loans will suffer some element of loss.

For an analytical answerto your questions, some platforms publish their historic loan book performance.  The data section www.altfidata.com/ is a good starting point - they collect the loans books and analyse the performance.

To be able to sensibly advise your clients, I recommend that you invest some of your own money into a selection of platforms.  Then you will understand the real issues around complexity, variety of offerings and platforms, assessing trustworthyness of platforms and borrowers, and extensive time needed for research.  No amount of words we tell you can substitute for that raw experience.  I started on peer to peer because Martin Lewies of Money Saving Expert said that he had tried it and it had worked for him.

Wow... I mean just... wow!

Assuming this is for real, you are an independent financial advisor.... so people pay you money to receive advice on how they should invest their money.... and what qualifies you to offer that advice?  you've simply elicited the views of some anonymous people on a web forum!  Beggars belief really.

I do hope your not trying to create a 'run' on Zopa and FC......  :-)

Context is all of course :-)

Harsh, perhaps.  But I cannot see how eliciting anecdotal statements from people on a web forum is any substitute for empirical analysis into the risk versus reward that different forms of P2P offer. 

This to me seems absurdly dangerous.  The general public put their trust in IFAs, and they pay their hard earned money to the IFAs for the advice they give, and they base their investment decisions on the advice given, putting their life savings at risk. The general public should be aware that the person they have asked for advice has about as much knowledge of the subject as they do.

My "day job" is as a management consultant.  The companies that pay for my advice do so because they know I have the knowledge and experience to offer the advice which forms the basis of spending decisions that could affect the success, or otherwise, of those companies. I could not justify to them or myself charging for advice that I've simply picked up from asking anonymous people on the internet.

I am not usually harsh on this forum, but on this matter I feel justified in being somewhat "red in the face" in my criticism.

Yes - I saw your post earlier today.

Our IFA was online 16 minutes ago and hasn't responded, so I thought I'd top up the cynicism seeing that the thread had rolled onto a new page....

And who could resist an opportunity for some more fishing puns whilst we all wait with baited breath to hear from ablrate?

The cynicism is fair enough, this is the internet!

I'm just trying to learn more about the industry, and anecdotal evidence is a good way to get your finger on the pulse.

Never trust anybody online, or assume that they are who they say to be. Time tested advice

That being said, those who have answered have been really helpful, and I appreciate them taking the time to answer.

IMHO the risk in regards to P2P is underplayed.