Alternatives to P2P for 1-3 Year Investing
dont_use_vistaprint
Posts: 600
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What would you do with £10K to invest, that gives a bit higher than 8-12% on P2P, but similar levels of risk and control to diversity and similar access to liquidate in part or full.
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dont_use_vistaprint wrote: »What would you do with £10K to invest, that gives a bit higher than 8-12% on P2P, but similar levels of risk and control to diversity and similar access to liquidate in part or full.0
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dont_use_vistaprint wrote: »What would you do with £10K to invest, that gives a bit higher than 8-12% on P2P, but similar levels of risk and control to diversity and similar access to liquidate in part or full.
What would I get if I wanted more returns than 8-12% on a short term basis but without taking any more risk?
Real.
And then just accept the going rates for cash, P2P, investment funds, or the casino.0 -
Which P2P is going to provide a likely 8-12% return anyway? Unless you are counting intro bonuses.0
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I'm getting 10% on Archover0
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I'm in 6 loans 2k in each, all between 8-10% and between 6mths-24mths duration, only one had a problem which was resolved without any missed payments and the company is now trading after being backed by Archover and its much larger parent company.
I moved my funds from funding circle due to bad debts, cannot fault Archover myself.
1 Loan completed on time last month another completes in 2 days, i also got £75 sign up bonus.0 -
Which P2P is going to provide a likely 8-12% return anyway? Unless you are counting intro bonuses.I'm getting 10% on ArchoverBut with Archover that's before allowing any defaults which may occur?I'm in 6 loans 2k in each, all between 8-10% and between 6mths-24mths duration, only one had a problem which was resolved without any missed payments and the company is now trading after being backed by Archover and its much larger parent company.
I moved my funds from funding circle due to bad debts, cannot fault Archover myself.
1 Loan completed on time last month another completes in 2 days, i also got £75 sign up bonus.
If you had instead lost the sixth of your money due to a default where the platform didn't decide to throw its good money after bad and 'back' the investee company, the loss would exceed a year's returns made on the other five sixths of loans you had made.
The OP is looking for a three year return. In three years time, assuming we have a recession (which is probably about due, based on timelines from history and the last nine years of bull markets) you can easily imagine some platforms *not* choosing to 'back' a defaulting borrower, just as you can imagine some platforms going completely belly-up.
Sure, you got a one-off £75 welcome bonus which comes out of the platform's potential future profits, as they are looking to buy market share. No problem with that. But the idea that someone with a 3-year view should expect to make significantly more than 8-12% while only taking the risks associated with p2p loans of 8-12% interest rate. Seems unrealistic.
Am I being overly pessimistic? Realistic, I think.Fatbritabroad wrote: »I've made 13% with Ablrate and now just invest up to the interest earned in each borrower or less
Doesn't bode well for OP, who is hoping to exceed the 8-12% rate of return which was historically available from certain P2P investments, without looking to take on any more risk than the typical risks associated with that level of return.0 -
Maybe its not a lack of confidence in Ablrate in only reinvesting interest just that they have reached their limit of new money same as reinvesting div's in a fund
But still no sure why the OP if they can get 12% today on P2P is looking to squeeze a couple of % extra for only 1 - 3 years0
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