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Post by rooster on Oct 9, 2018 20:20:40 GMT
I'm realistic about delays for receiving return of capital/interest and equally of the time taken to recover defaulted loans. However the volume of defaults is as we all know excessive and perhaps more importantly, not justified by a c.12% interest rate.
12% is achievable with a 5-10 year non-p2p investment fund. Lendy's offering, including the apparent risk involved needs to offer rates far in excess of that. It's hard to put a number on it but I think somewhere north of 18% would be a lot more realistic.
In any case, reinvestment is always part of my investment strategy and goes hand in hand with throwing in new cash. Until some of my defaulted loans are recovered and paid back to me, i'm going to sit on my new cash and count it instead. Doing that is sadly more gratifying.
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cwah
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Post by cwah on Oct 9, 2018 22:33:33 GMT
I'm realistic about delays for receiving return of capital/interest and equally of the time taken to recover defaulted loans. However the volume of defaults is as we all know excessive and perhaps more importantly, not justified by a c.12% interest rate. 12% is achievable with a 5-10 year non-p2p investment fund. Lendy's offering, including the apparent risk involved needs to offer rates far in excess of that. It's hard to put a number on it but I think somewhere north of 18% would be a lot more realistic. In any case, reinvestment is always part of my investment strategy and goes hand in hand with throwing in new cash. Until some of my defaulted loans are recovered and paid back to me, i'm going to sit on my new cash and count it instead. Doing that is sadly more gratifying. What investment funds offer 12% on 5-10 years period?
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SteveT
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Post by SteveT on Oct 10, 2018 7:36:02 GMT
I'm realistic about delays for receiving return of capital/interest and equally of the time taken to recover defaulted loans. However the volume of defaults is as we all know excessive and perhaps more importantly, not justified by a c.12% interest rate. 12% is achievable with a 5-10 year non-p2p investment fund. Lendy's offering, including the apparent risk involved needs to offer rates far in excess of that. It's hard to put a number on it but I think somewhere north of 18% would be a lot more realistic. In any case, reinvestment is always part of my investment strategy and goes hand in hand with throwing in new cash. Until some of my defaulted loans are recovered and paid back to me, i'm going to sit on my new cash and count it instead. Doing that is sadly more gratifying. What investment funds offer 12% on 5-10 years period? I suspect it should have been qualified as " In a rising stock-market, 12% is achievable with a 5-10 year non-p2p investment fund". Many funds have certainly achieved this over the last decade, but that's very different from suggesting that many will do so over the next decade (let alone which ones!)
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Post by magoo68 on Oct 10, 2018 9:39:17 GMT
What investment funds offer 12% on 5-10 years period? I suspect it should have been qualified as " In a rising stock-market, 12% is achievable with a 5-10 year non-p2p investment fund". Many funds have certainly achieved this over the last decade, but that's very different from suggesting that many will do so over the next decade (let alone which ones!) Not necessarily a rising market overall, just very good timing & choice of fund...... and the research that goes into that!! But certainly not a given by any stretch, and get it wrong and your capital is at risk. However, if you can live with fluctuations in your capital, 7% or so is reasonably easy to achieve if you delve into the world of high yield Investment trusts. As ever, DYOR  But if you've seen your Lendy rate dwindle to a measly 4% or so before tax (yep, that's me!)..... there are definitely better ways to achieve more, with it would seem rather less long term risk to your capital! imho
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Post by p2plender on Oct 11, 2018 5:34:04 GMT
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zedi
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Post by zedi on Oct 11, 2018 7:36:45 GMT
Nobody said it´s impossible to find a fund that achieves more than 12% p.a. in a bull market... like nobody knows whether your Ocean-Fund will show superior returns in the future. And you should also always compare it to it´s benchmark (which is certainly not FTSE All-Share as indicated in your finance porn article), in this case the indian stock market with a heavy bias towards mid and small caps. What I found after a quick research is this one for indian small caps: us.spindices.com/indices/equity/sp-bse-smallcap
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adrianc
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Post by adrianc on Oct 11, 2018 9:18:31 GMT
investing.thisismoney.co.uk/charts/IGC/India-Capital-Growth-Fund.htmlSo annualised returns are roughly 9mo -48%, 1yr -25%, 3yr +9%, 15yr -2.5%. Sure, 5 and 10yr returns are healthily positive, but... And, again, annualised returns... YTD -36%, 1yr -17%, 3yr +7% Yeh, y'know what...? Thanks, but no thanks.
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zedi
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Post by zedi on Oct 11, 2018 9:33:01 GMT
And, again, annualised returns... YTD -36%, 1yr -17%, 3yr +7% Yeh, y'know what...? Thanks, but no thanks. That one was only meant as a better benchmark for the Ocean-Fund than the FTSE All-Share, not as an advice to invest in indian small caps...
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cwah
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Post by cwah on Oct 12, 2018 11:32:27 GMT
To go back to the topic, i think the question is when is the tipping point where lendy will start using up the provision fund to pay its staff and operating cost as investor don't want to invest anymore...
And at which stage it may be better to run away to avoid total loss of capital due to bankrupcy
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Post by p2plender on Oct 12, 2018 12:14:51 GMT
I'm sure many would love to run from this mess, sadly not an option for many.
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Post by charliebrown on Oct 12, 2018 12:17:26 GMT
To go back to the topic, i think the question is when is the tipping point where lendy will start using up the provision fund to pay its staff and operating cost as investor don't want to invest anymore... And at which stage it may be better to run away to avoid total loss of capital due to bankrupcy Is it legal to pay salaries from the provision fund? Who are you suggesting would run away? Investors? I think most of us would love to be able to run away, but with millions of our money stuck in toxic loans how can we run? The situation now seems to have a certain inevitability about it. Even posts on this forum have dried up as everything that can be said has already been said.
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Post by charliebrown on Oct 12, 2018 12:36:04 GMT
Platform risk no longer worries me. I'm starting to wonder whether we'd be better off having the professionals in to wind the loan book down. I don’t disagree. Most of my defaults have gone month after month after month with no material updates. Some have recycled excuses that were first seen a year ago. However, as someone who also has money stuck in COL (receivers appointed) the situation seems to be going absolutely nowhere. It all depends how professional the professionals are I guess.
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cwah
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Post by cwah on Oct 12, 2018 12:44:09 GMT
I mean if you still have some ££ in working loans... Would you run away?
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Godanubis
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Post by Godanubis on Oct 12, 2018 15:39:11 GMT
Platform risk no longer worries me. I'm starting to wonder whether we'd be better off having the professionals in to wind the loan book down. I don’t disagree. Most of my defaults have gone month after month after month with no material updates. Some have recycled excuses that were first seen a year ago. However, as someone who also has money stuck in COL (receivers appointed) the situation seems to be going absolutely nowhere. It all depends how professional the professionals are I guess. If you consider all loans as 2 year loans 95+% would be resolved. 
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Post by GSV3MIaC on Oct 12, 2018 17:16:07 GMT
/mod hat off
Only if you consider months 6-24 as an interest free period. 8>.
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