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Post by khampson on Oct 4, 2016 7:52:32 GMT
What return are you getting using autobid I know the arguments against and for, so but I know some people do use it and just wondered what the Returns are like just using it? After fees and default loans thank you
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SteveT
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Post by SteveT on Oct 4, 2016 9:01:33 GMT
What return are you getting using autobid I know the arguments against and for, so but I know some people do use it and just wondered what the Returns are like just using it? After fees and default loans thank you FC publish the range of returns experienced (for a variety of levels of diversification) in their Statistics section here: www.fundingcircle.com/statistics (scroll down to the "Join the Funding Circle 100 Club" section). The large majority of "investors" represented in those graphs will be Autobid lenders, with most forumites likely to be amongst the upper outliers.
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blender
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Post by blender on Oct 4, 2016 10:39:59 GMT
What return are you getting using autobid I know the arguments against and for, so but I know some people do use it and just wondered what the Returns are like just using it? After fees and default loans thank you FC publish the range of returns experienced (for a variety of levels of diversification) in their Statistics section here: www.fundingcircle.com/statistics (scroll down to the "Join the Funding Circle 100 Club" section). The large majority of "investors" represented in those graphs will be Autobid lenders, with most forumites likely to be amongst the upper outliers. I agree with what you say SteveT but would add some warnings about those statistics. Firstly those returns by diversification have not been updated since March 2016 and include only those lenders who had been lending since March 2015 - so rather out of date. It would seem that the median and mode figure is between six and seven percent, with the median presumably around 6.5%, whereas the overall return on the loan book is now given as 7.1%. So is the difference between 6.5% and 7.1% just a matter of old and new figures, or does it represent a difference between Autobidders and the whole population now? One thing to take account of it that the diversity graphs are not weighted, so that the £5k lender counts as one, as does any whole loan lender of millions who qualifies to be on the diversity chart. It has been shown on this board that whole loan lenders, other than the trust, have been selective and successful in getting better returns and that whole loan rejects probably go to Autobidders. Also it is probably the case that manual bidders, bots and flippers are in the upper half of the distribution and represent a larger investment per lender (that certainly applies to me). I think that the current performance of the loan book has been around or above 7% for some time and it is probable that the median for Autobidders will be 6.5% or a bit less - though we will never know because we do not have the data. Considering there is zero work to do nor skill reqired, 6.5% is useful.
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Post by GSV3MIaC on Oct 4, 2016 15:34:15 GMT
True, but you could probably do as well or better, and shelter it in a S&S ISA, by buying their Investment Trust. Even less work.
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Post by khampson on Oct 4, 2016 15:51:22 GMT
True, but you could probably do as well or better, and shelter it in a S&S ISA, by buying their Investment Trust. Even less work. What is S and S isa? Thanks
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blender
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Post by blender on Oct 4, 2016 15:53:39 GMT
Stocks and Shares ISA
I have been with FC so long that I can remember when they planned to have an IFISA (Innovative Finance) without having to go Stocks and Shares.
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acky
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Post by acky on Oct 4, 2016 16:49:16 GMT
Stocks and Shares ISA
I have been with FC so long that I can remember when they planned to have an IFISA (Innovative Finance) without having to go Stocks and Shares. Do we think ANY of the major platforms will get cleared for an IFISA before the end of the financial year? The IFISA squid seems to be about as damp as a bunch of damp things. How many others, like me, are holding lots of dosh in Instant Access Cash ISAs at interest rates smaller than a gnat's crochet hoping that one of these outfits of cowboys can satisfy the regulators?
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fp
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Post by fp on Oct 4, 2016 17:53:28 GMT
Stocks and Shares ISA
I have been with FC so long that I can remember when they planned to have an IFISA (Innovative Finance) without having to go Stocks and Shares. The IFISA squid seems to be about as damp as a bunch of damp things. How many others, like me, are holding lots of dosh in Instant Access Cash ISAs at interest rates smaller than a gnat's crochet hoping that one of these outfits of cowboys can satisfy the regulators? I think you'll be lucky to see one paying a decent return.
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blender
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Post by blender on Oct 4, 2016 21:02:20 GMT
Stocks and Shares ISA
I have been with FC so long that I can remember when they planned to have an IFISA (Innovative Finance) without having to go Stocks and Shares. Do we think ANY of the major platforms will get cleared for an IFISA before the end of the financial year? The IFISA squid seems to be about as damp as a bunch of damp things. How many others, like me, are holding lots of dosh in Instant Access Cash ISAs at interest rates smaller than a gnat's crochet hoping that one of these outfits of cowboys can satisfy the regulators? It's a damp squib, acky, a firework. Squid are supposed to be damp. Gnat's crochet and cowboy outfits - I give up. My own theory is that the forces of darkness do not want the p2p operators to be grown up and have ISAs. Bankers and their friends will try to stop 2016-7 at least.
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nick
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Post by nick on Oct 5, 2016 8:15:44 GMT
Stocks and Shares ISA
I have been with FC so long that I can remember when they planned to have an IFISA (Innovative Finance) without having to go Stocks and Shares. Do we think ANY of the major platforms will get cleared for an IFISA before the end of the financial year? The IFISA squid seems to be about as damp as a bunch of damp things. How many others, like me, are holding lots of dosh in Instant Access Cash ISAs at interest rates smaller than a gnat's crochet hoping that one of these outfits of cowboys can satisfy the regulators? I feel your pain! I have several year's worth of ISA allowance in for both my wife and I sitting as cash in a S&S ISA waiting for a major platforms to become authorised and launch their IFISA. I think we will be lucky to see any launchs this tax year and can only hope that something happens before we go to much into the next tax year - I'll be loathed to add my current year ISA subscriptions to my existing cash burden that is gathering dust. I noticed that a couple of new platforms have launched IFISA offerings such as Crowdstacker etc, but I'm uncomfortable deploying any material funds on new untried platforms so the wait continues.....
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acky
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Post by acky on Oct 5, 2016 16:02:08 GMT
Do we think ANY of the major platforms will get cleared for an IFISA before the end of the financial year? The IFISA squid seems to be about as damp as a bunch of damp things. How many others, like me, are holding lots of dosh in Instant Access Cash ISAs at interest rates smaller than a gnat's crochet hoping that one of these outfits of cowboys can satisfy the regulators? I feel your pain! I have several year's worth of ISA allowance in for both my wife and I sitting as cash in a S&S ISA waiting for a major platforms to become authorised and launch their IFISA. I think we will be lucky to see any launchs this tax year and can only hope that something happens before we go to much into the next tax year - I'll be loathed to add my current year ISA subscriptions to my existing cash burden that is gathering dust. I noticed that a couple of new platforms have launched IFISA offerings such as Crowdstacker etc, but I'm uncomfortable deploying any material funds on new untried platforms so the wait continues..... Indeed. One does wonder, though, how a platform like Crowdstacker can get authorisation when much larger and what one would have thought would be more established platforms like FC, RS & Zopa seem to find it so difficult. Says a lot about these platforms, perhaps?
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nick
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Post by nick on Oct 5, 2016 16:10:53 GMT
I feel your pain! I have several year's worth of ISA allowance in for both my wife and I sitting as cash in a S&S ISA waiting for a major platforms to become authorised and launch their IFISA. I think we will be lucky to see any launchs this tax year and can only hope that something happens before we go to much into the next tax year - I'll be loathed to add my current year ISA subscriptions to my existing cash burden that is gathering dust. I noticed that a couple of new platforms have launched IFISA offerings such as Crowdstacker etc, but I'm uncomfortable deploying any material funds on new untried platforms so the wait continues..... Indeed. One does wonder, though, how a platform like Crowdstacker can get authorisation when much larger and what one would have thought would be more established platforms like FC, RS & Zopa seem to find it so difficult. Says a lot about these platforms, perhaps? I don't think it is necessarily a reflection on the platforms. I expect that new platforms can obtain authorisation far quicker than existing platforms that are operating under interim authorisation because they are a clean slate and have no historical baggage. It means that the FCA do not have to spend any time reviewing historical practices etc, and more importantly, if the FCA raise concerns over certain proposed aspects of the business, these can be quickly addressed by a entity that has no existing business versus one which is likely to need to negotiate changes with the FCA so to minimise the impact on existing practices/systems on live business. This is why when an existing business looks to undertake regulated business, it will nearly always set-up a separate new vehicle to undertake the business (as well as not want its existing non-regulated business to be subject to regulatory burden).
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voss
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Post by voss on Oct 5, 2016 17:30:55 GMT
Perhaps a ray of hope in all this IFISA gloom is that, as IFISAs are now being offered, the whole idea cannot now be abandoned as has happened with other pet ideas of George Osborne's.
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