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Post by wizzen on Oct 6, 2016 8:38:45 GMT
Hi,
for those of you who use Portfolio Manager what is your setting for Max investment per Loan?
Lets say there are 10k€ to be invested with the goal of good diversification and conservative setting.
Thank you for any suggestions.
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,323 
Likes: 897
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Post by JamesFrance on Oct 6, 2016 10:22:34 GMT
I don't know any forum member who is still using the pm, so you will probably not get a reply to your question. There don't seem to be many better rated loans on the market but there could be plenty bought through the pm which never show there. It would all depend on how quickly you want to have all the money invested but I would not be aiming for fewer than 200 loans which would indicate not more than 50€ each.
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Post by wizzen on Oct 6, 2016 10:43:28 GMT
Thank you for the answer. Manual bidding is quite time consuming (at least for me) that is why I prefer PM automation - as long as it work ok.
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Post by rahafoorum on Oct 6, 2016 11:23:56 GMT
Biggest problem with the PM is that you don't know what you will be investing into, what return you will be getting (especially if you have to pay taxes as well) and what risk you are taking. If you think that all loans on Bondora platform are great and will continue to be into the future as well (afaik, Bondora has reserved the right to change what your PM invests into), then PM is good way to go I guess. Otherwise I'd go with API to set more specific criteria or some alternative investment option outside of Bondora.
Besides this, I'd start the investment with some different questions than how much to invest per loan. Maybe something like: What's the outcome you want to acheive? What kind of loans on Bondora would allow you to achieve this, if any?
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Post by wizzen on Oct 6, 2016 12:33:50 GMT
rahafoorum: Thank you for your answer. I agree that PM is far from perfect on many levels but for the time being it is the only option due to its full automation. So far PM is working fine for me. After a year and few months the net return including paid taxes is still 12-15%. My general goal is investing into "financial products" that return at least 10% after taxes. If you have any suggestions for investing outside of P2P lending zone please share it. 
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miso
Posts: 25
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Post by miso on Oct 11, 2016 8:33:02 GMT
Getting back to your original question, I wouldn't invest more than 1% of portfolio in one loan. So for 10k portfolio it would be 100 E max per loan. Of course it depends on your investment risk profile (How much would you accept to lose if loan goes to default etc)
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james
Posts: 2,205
Likes: 955
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Post by james on Oct 11, 2016 22:25:10 GMT
Biggest problem with the PM is that you don't know what you will be investing into, what return you will be getting (especially if you have to pay taxes as well) My guess is that if you are paying taxes and use the PM you will get a negative return. My guess is that the interest you receive after tax will be less than needed to cover the bad debt level. Assumption is a high proportion of loans with high expected default rates that are supposed to be covered by interest on non-defaulted loans but will not be because of the tax. Unless you are allowed to deduct bad debt before tax. Or maybe if you are trying to make a profit with secondary market trading instead of interest.
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fric
Member of DD Central
Posts: 200
Likes: 80
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Post by fric on Oct 12, 2016 6:23:05 GMT
Last time I used PM I was screwed sooo badly on bondora. 50% of loans defaulted after making no repayments or making only 1 or 2 repayments.
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