@kelvinteo wow you've answered all. Thank you. It shows that you are really humble. Actually, I googled you hence asking if you want to be famous :) Maybe Kelvin Teo in Wikipedia is a different person. hehehe
Hey @Bendahara! The marketing team at Funding Societies caught sight of this post and have republished it on the Funding Societies blog here!
Here's a little thank you post for your valuable contribution ;)
@kaeley-wn said in [Poll] How much of your liquid net investments (excluding pension) is in P2P?:
@allen Hey Allen! Welcome to the community 🎉
Thank you for raising these clarification questions! It's pertaining to your total amount of investments. Also, agree that P2P is relatively illiquid, especially so for investments in the loans with longer tenures. The aim of the question is to find out the extent to which you're allocating your accessible funds to P2P! Hope this clarifies :)
Agree that P2P is illiquid, even for the shorter tenures. Unless we can trade our loan parts within a secondary market.
@jomni For low value PDs, it is a very good approximation. However Quickash also published PDs that are 23.8% or higher! So I use the inverse PD, eff rate should be greater than 1/(1-PD) plus your hurdle rate(not necessarily true as explained later below). For e.g. if PD is 50% (i.e 1 in two loans will fail) and my hurdle rate is 10%, the loans better have an effective rate of 110% p.a!!!. E.g. I invest in 2 loans (PD=50%) with $1000 each and expect 1 to fail, I will expected to get back for expected 1 non-default of $2100(with the other one defaulted) which is only 5% return on the $2000 invested. To cut the story short, hurdle rate is also depending on PD and the above example is only on balloon payments. With amortisation payments and/or longer tenure, it really gets more complicated. My caveat emptor is to learn first how PD works(especially on long tenure loans like Fundaztic) and add some buffer (due to long tenure uncertainty and platform “potential underestimation of PD”), recalculate and invest based on your own results and also “gut feel” of the industry/company/platform due diligence/etc.
@alex-chua-cheng-en Hey there Alex! We've just done up a post on 1.1.2: Malaysian P2P platforms which are open to foreign investors. You can check it out here!
Within the coming week, you can expect to also see an overview of factors affecting returns, which is the second part of this series!
This would be what I will do as well.
I add in one more PD (%) with my total loans amount to provide a provision for any chances of default.
example pd is 1% and a total loan amount of say 10,000, i would provide a provision of around $100 in case of defaults.
May not be the most accurate but at least I have a rough gauge how much i need to provide for write off.
@gaudente said in Mintos referral campaign:
Mintos referral campaign is reopening until 22 October.
Bonus will be 0.75% My referral link is still the same www.mintos.com/en/ref/GVPH71
campaign reopened until 3rd December , same bonus and referral code.
On a general note, here are some referral links to some of the platforms above, and an explanation of what reward each referrer/referred gets:
My Code, to be used during registration: U027595
This referral program is quite unfair, offering 1% of the funds invested during the 3 first months ONLY to the referrer. To make it fair, I propose I bank you 0.5% so we both get 0.5% of the invested funds
Reward: 5 EUR + 0.5% of the funds invested for both.
0.5% of the funds invested during the next 3 months of opening the account for both.
0.75% of the funds invested during the first 3 months for both
Referral income is paid for all investments made within 6 months by users, registered by following your referral link. The time period is calculated from the moment of user’s registration on Grupeer Platform.
Referral income depends on the term for which the investment is made:
• investments for a period up to 3 months : referral income 0.50% of the investment;
• investments for a period from 3 up to 6 months: referral income 0.70% of the investment;
• investments for a period from 6 up to 9 months: referral income 1.00% of the investment;
• investments for a period from 9 up to 12 months: referral income 1.00% of the investment;
• investments for a period more than 12 months : referral income 1.25% of the investment.
Hey everyone! For the people who still have some leftover questions, @kelvinteo is doing another AMA soon. Please tune in.
Thought I'd share @Faris-Jamal's perspective here! :
I've been hearing about crowdfunding for the past two years but had only taken the initiative to put my money in in August 2018. Now I'm shifting my personal portfolio of investments so that debt crowdfunding constitutes about 20% of it, and it might grow to a larger percentage.
The main reason for the shift is that, based on my observation for more than a year, most debt crowdfunding platforms in Malaysia provide risk-adjusted returns (after adjustment for credit default risk) well above the other asset classes. Being a Bumiputra here in Malaysia and a risk-averse investor, my risk tolerance is relatively low considering my relatively high opportunity cost. Capital-guaranteed (by the government) investment opportunities that are present for the Bumiputras here provide return profiles well above the quintessential risk-free investments fixed deposits and government bonds are normally associated with. So technically, my definition of risk-free rate of return is well above the FD rate and even the MGS yield here in Malaysia. But I notice that, despite this high opportunity cost, debt crowdfunding offers me an opportunity to grow my investment portfolio at a faster rate, while still keeping the downside risk in check. On top of that, with the absence of market risk, I do not have to worry about the short-term volatility of my investment portfolio in this particular asset class. It is something that I think can run on autopilot given that I properly set my risk tolerance and investment return target on such platforms.
Have my fair share of investments in other P2P platforms as well other than FS MY as my second layer of diversification strategy. But in all honesty, I still would not put P2P financing as my core investment given its nature of risk, and its assurance. Furthermore, given the local regulator's recent initiative to facilitate fixed income investments (listed bonds & sukuk) among retail investors, it will add direct investment into these securities as another investable asset class for us here, which is positive for diversification purposes. :)
They were valued at 1.5 billion pounds instead of the originally estimated 2 billion pounds?
For US counterparts Lending Club and On Deck, share prices have been dwindling. However one key difference is FC's focus on business borrowers instead of consumer borrowers.
@vamsi7 said in Progress/success thread for crowdfund talks:
So, in short success for me now for CF is yield > 8% net tax and fees etc.
That's quite specific.! thanks for sharing. Hope all of us here can help you reach your goals.!
My rule is CF yield - probability of default > 5%. :D
@jomni Yes, with additional steps - select table, format table, filter date, copy, paste. The last 2 steps may also be error prone? Maybe it's just me, I am thinking it would be easier to get a feature on FS site to select date range (or by month), click to save/export.
This feature is already there for view statement, just 1 click and i get my statement (just not in csv). For what its worth, Public Bank in Malaysia is known to have inferior digital services as one of the 3 largest banks in the country, but as a credit card and online banking user, i get to generate my monthly statement in csv, which I will subsequently apply formula.