SteveK
Member of DD Central
Posts: 59
Likes: 31
|
Post by SteveK on Oct 19, 2023 21:16:44 GMT
I‘m thinking of investing in UB. It would be a transfer in of IFISA funds so if I started with £2500 how long would that take to be invested approx? And what settings would get this invested fairly quickly? Is the cash drag an issue currently? Any other help or tips?
|
|
|
Post by Ace on Oct 19, 2023 21:54:53 GMT
I‘m thinking of investing in UB. It would be a transfer in of IFISA funds so if I started with £2500 how long would that take to be invested approx? And what settings would get this invested fairly quickly? Is the cash drag an issue currently? Any other help or tips? The minimum you can invest in each loan is £5. If you set this as your maximum loan amount you would need 500 loans to deploy your £2,500. Over the past month I've received allocations to 60 loans. At that rate it should take 8.3 months to deploy your £2.5k. However, loans will start to repay after 6 months, so it would likely take longer. I guess what I'm saying is, that you would need to set your maximum loan size higher than the minimum £5. Unfortunately, it's not a simple case of scaling up your minimum to £7. This is because you would very rarely receive a £7 allocation as the loans are very oversubscribed. For example, I have an account with a maximum loan size set to £2k, but even then the vast majority of my allocations are £5.xx. I would suggest that you set your maximum loan size to whatever value you are genuinely happy to accept, as you will occasionally receive your requested maximum for very large loans. Something like £50 might be sufficient to fully deploy your funds over 6 months, as you would occasionally receive larger than £5 allocations. Obviously, the higher you set it the quicker you will get deployed, but it's a very inexact science. You may also be able to add a manual allocation to very large loans if you particularly like the look of them. I am beginning to suffer higher than usual cash drag in my accounts. Somewhere around 5% cash currently. This usually gets eaten up when one or two very large loans are curated. Good luck.
|
|
benaj
Member of DD Central
Posts: 4,884
Likes: 1,603
|
Post by benaj on Oct 20, 2023 6:31:08 GMT
One of my p2p mistakes is having fund deployed too quickly without understanding the platform operations and performance. Like Ace said, most investors get a small slice. Having set the amount too much you could be allocated a big portion of troubled loans like mine. Since there’s no resale market, you probably would like to invest those in the first place. Anyway, it would be more helpful for new investors if Unbolted could produce some outcome statements for loan performance.
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 10,881
Likes: 11,105
|
Post by ilmoro on Oct 20, 2023 6:39:13 GMT
One of my p2p mistakes is having fund deployed too quickly without understanding the platform operations and performance. Like Ace said, most investors get a small slice. Having set the amount too much you could be allocated a big portion of troubled loans like mine. Since there’s no resale market, you probably would like to invest those in the first place. Anyway, it would be more helpful for new investors if Unbolted could produce some outcome statements for loan performance. unbolted.com/uk/investing/loan-performance/
|
|
|
Post by overthehill on Oct 20, 2023 8:09:44 GMT
I think it's fair to say Unbolted know what they are doing and so judge them by their record. I'm sure they could lend more to riskier loans and borrowers. My balance is reducing because every time I withdraw £200 another £200 cash sits uninvested.
|
|
SteveK
Member of DD Central
Posts: 59
Likes: 31
|
Post by SteveK on Oct 20, 2023 12:42:35 GMT
Thanks for the informative replies. I think I'll put in a smallish amount first, set a middling minimum, maybe look at manual allocations also, then gauge the outcome to see if it's for me.
|
|
michaelc
Member of DD Central
Posts: 4,896
Likes: 2,768
|
Post by michaelc on Oct 20, 2023 13:06:19 GMT
Only advice I have is don't do it. Don't invest in any p2p platform.
I've lost significant sums in the many p2p platforms that have gone belly up. Just look on this board at for example, FundingSecure, Lendy, Colateral and many others. I'm currently stagnantly in Unbolted and waiting to see if I get sued for the mere act of opening an account and putting some cash in. (See most popular thread in the Unbolted board of "Cashing out because of a court case").
Even if things work out, it typically takes many years to withdraw all funds from a platform.
Note also it is sadly in the interests of those already invested (in any platform) to create an air of normality whatever the underlying reality.
|
|
|
Post by Ace on Oct 20, 2023 13:21:54 GMT
Thanks for the informative replies. I think I'll put in a smallish amount first, set a middling minimum, maybe look at manual allocations also, then gauge the outcome to see if it's for me.
That is a reasonable policy (drip feed), but it will likely lead to slower deployment. The allocation algorithm is a mystery, but it does seem to be the case that a larger amount of unallocated cash results in higher allocations.
|
|
|
Post by Ace on Oct 20, 2023 13:28:58 GMT
... Note also it is sadly in the interests of those already invested (in any platform) to create an air of normality whatever the underlying reality. Given the constant oversubscription of loans on Unbolted it would actually be in the interest of those of us who would like to be able to invest more to dissuade new investors rather than provide the honest feedback on our experiences.
|
|
SteveK
Member of DD Central
Posts: 59
Likes: 31
|
Post by SteveK on Oct 20, 2023 13:32:49 GMT
Thanks for the informative replies. I think I'll put in a smallish amount first, set a middling minimum, maybe look at manual allocations also, then gauge the outcome to see if it's for me.
That is a reasonable policy (drip feed), but it will likely lead to slower deployment. The allocation algorithm is a mystery, but it does seem to be the case that a larger amount of unallocated cash results in higher allocations. That's interesting, I'll consider upping my initial amount in an attempt to get quicker deployments.
|
|
benaj
Member of DD Central
Posts: 4,884
Likes: 1,603
|
Post by benaj on Oct 20, 2023 14:02:47 GMT
Yup, the algorithm is indeed a mystery. I have 0 live loans and logged in to check my past investments from 2019.
It seems i got allocated for larger slice whenever a business loan is due for renewal.
For normal blings, only a small slice.
|
|
|
Post by redpete on Oct 23, 2023 22:05:52 GMT
Cash drag is getting to be a bigger problem. For most of the last 18 months or so it has been running at around 2% for me but has recently risen to around 7.8% even though I am removing the interest each month rather than re-investing it.
|
|
|
Post by Ace on Oct 23, 2023 22:27:14 GMT
Cash drag is getting to be a bigger problem. For most of the last 18 months or so it has been running at around 2% for me but has recently risen to around 7.8% even though I am removing the interest each month rather than re-investing it. Cash drag jumped up for me today. Across 4 accounts that I'm managing it's now 5.7%, 8.5%, 8.9% and 9.0%. There have been no withdrawals from any of those accounts in the past year.
|
|
mogish
Member of DD Central
Posts: 1,019
Likes: 500
|
Post by mogish on Oct 24, 2023 6:45:59 GMT
Cash drag is getting to be a bigger problem. For most of the last 18 months or so it has been running at around 2% for me but has recently risen to around 7.8% even though I am removing the interest each month rather than re-investing it. Cash drag jumped up for me today. Across 4 accounts that I'm managing it's now 5.7%, 8.5%, 8.9% and 9.0%. There have been no withdrawals from any of those accounts in the past year. I can mirror this. Too many investors too little loans. Pity, it's been a decent return for me. I would have thought with the current financial times we live in the platform would be growing. Strange world.
|
|
SteveK
Member of DD Central
Posts: 59
Likes: 31
|
Post by SteveK on Oct 31, 2023 16:09:08 GMT
Okay, money put into platform yesterday, via AutoLend, and 3 loans invested, first loan over £100 then two £5 loans, one being 'Sarah Lucas Beer Can P***s'. You learn something new every day, didn't know such a thing existed and was worth so much! Don't know if I'll be telling my mates, down the pub, that I've invested in a p***s , they'll probably take the p*ss!
|
|