mogish
Member of DD Central
Posts: 1,105
Likes: 527
|
Post by mogish on May 11, 2023 12:18:38 GMT
BOE has raised rates yet again. Presume Platforms such as Loanpad etc will have to raise rates to investors also.
I'm no expert but cash is king may be increasingly accurate statement in the short term.
I'm still keen to up my sipp but not so keen to add to more funds, especially when the bulk is in vwrp and hsbc trackers.
Not sure where to put it. Never going back to the days of large percentage in p2p as I probably escaped lightly with a few thousand losses in Wellesley, assetz and fees paid to zopa and lending works.
However I'm still with Loanpad and unbolted. That will do me for now.
|
|
macq
Member of DD Central
Posts: 1,934 
Likes: 1,199
|
Post by macq on May 11, 2023 13:21:51 GMT
I can't say whether its advantageous or not as each case is different but i think its fair to say that its many levels below p2p in risk (i guess there must always be some risk even if it feels like its virtually zero just because its invested & not cash in a bank/BS) Rates on funds over the last few years have been minimal but Something like the Royal London short term money fund is earning close to or equivalent of the SONIA rate @ 4.18% before any fee's/charges for pretty much instant access.There is also a current thread on the MSE forum discussing the pro's & cons of MM funds plus the fund from Vanguard etc and also the ERNS etf among others How do you know the fund is going to return 4.18% ? It aims to outperform the SONIA rate. Do you just have to wait and see what your interest payment is ?
HL is paying around 2.6% on SIPP drawdown cash which is poor but generous for them.
Kinda my bad as i assumed from what i had read on what i think was the Monevator site (rather then checking the fact sheet!) that it would be hitting around the SONIA rate but it was mentioned that not all MMF are built quite the same so it would always be worth checking back over a few years.With rates changing rapidly over the last year it seems the yield information is not keeping up on some sites so i would still use the SONIA rate myself.But did notice last night that the last post on the MSE form on this subject was saying their latest monthly dividend on their Vanguard fund had paid 4.23%.I guess you can always check the daily raise on the fund via HL or AJ Bell etc to work it out (but not after the weekend or bank holiday when the extra days bump that movement more)
|
|
|
|
Post by Ace on May 11, 2023 21:25:12 GMT
With stock markets performance recently, do you think investors may move back to P2P again? The number of platforms has drastically reduced but there are still P2P options out there. Money markets seem to drawing in millions, what's your take on this? I doubt that many of those that were badly burnt by the many incompetent and scam platforms would consider returning. The landscape seems different now, with many platforms at or near to profitability, and the steady run of administrations seems to have slowed. Perhaps those that made good profits in the past might return now that rates are rising. I suspect that it might take a step change in regulation for the industry to move forward at anything beyond slow growth; can't see it happening with the FCA's pathetic record though. I'm not sure that the number of platforms has drastically reduced. Anyway, there are still plenty of good platforms to choose from and to diversify over. I haven't really given money markets much of a look as the rates are too low for me. P2P platforms are now a first-choice lender for an increasing number of property developers. Even with P2P we're still building far too few homes in the UK, so we desperately need P2P to succeed. I'm very happy to stick with my 50:50 allocation between S&S and P2P. The P2P half has outperformed the S&S half for me over the past 5 years. It's also been dramatically less volatile, and provided a remarkably stable income.
|
|
