Octopus Choice

short_butt_sweet

pmjenkins wrote: »

If you want to diversify across multiple P2P platforms with minimal effort you should look at Orca. They will split your investment across Assetz Capital, Landbay, Lending Crowd, Lending Works, Octopus Choice, and RateSetter. They target a return of 5%.

but then you're exposed to single-platform-risk with orca.


in the sense that: if orca failed to keep client assets separate from their own, and then collapsed, you could lose everything, with no recourse to the FSCS for compensation.


actually, you have 2 layers of that kind of risk. orca could fail to keep assets separate, or the platforms they are spreading your money across could fail to do it. it would be safer to spread your money across multiple platforms yourself.



you're also exposed to platform risk with orca in the (less dramatic) sense that they could do a bad job at picking credible platforms to use and picking loans on platform and diversifying. what is their record at all this? they seem to have started this service this year.


orca is apparently operating in what the FCA calls a "regulatory sandbox". is that reassuring? does the FCA know what a "sandbox" usually implies?



why not go for the better-regulated approach, and buy a high-yield bond fund on a fully-regulated, not "sandbox", FSCS-protected platform? you could easily get a yield similar to the 5% which orca are targetting.

Malthusian

short_butt_sweet wrote: »

orca is apparently operating in what the FCA calls a "regulatory sandbox". is that reassuring? does the FCA know what a "sandbox" usually implies?

That it stinks of cat s!!!? (At the risk of a #thatsthejoke)

funkey_monkey

Just to clarify, after speaking with the IFA, he recommends it for only a portion of my £40k.

However, I'm not sure what to do with the remainder which is returning below inflation currently.

I've got £140k in S&S ISA
£60k in savings accounts for property
£40k in shares/Index linked cert/premium bonds

I am considering putting £5k into Octopus Choice.
This leaves £55k. What can I do with it to avoid it getting eaten away by inflation and yet remain as near cash?

funkey_monkey

Any recommendations?

Alexland

funkey_monkey wrote: »

Any recommendations?

There are no magic bullets. It sounds like your property purchase is going to be soon enough that S&S investment assets would be inappropriate. The best safe cash rates on lump sums run below inflation. P2P lending carries risk and while you can use multiple platforms you could find you are in an overall loss position if certain situations were to occur.

The best option might be to just get on with the property purchase if possible?

Alex