[Poll] Do you think P2P is a risky investment?


  • Community Manager

    Hey everyone!

    Many of us here have been investing in peer-to-peer lending for quite some time now, as we can see from the conversations, some in increasing amounts, some relying on the compounding of your original deposit amount.

    This topic highlights the % of funds the community's P2P investors place into P2P lending

    Would be interesting to know, by your personal definitions, is P2P lending still considered a risky investment to you now? (in the grand scheme of things - taking into account other "risky" investments like crypto, non-blue-chip stocks) Has your opinion changed since you invested your first dollar? And if so, what made you change your opinion?

    Do vote!

    Would be interesting for us to listen in on / share our perspectives :)

    Happy diversifying!



  • I have been investing in P2P loans since December 2016, and till this day I still consider it a risky investment, especially those without collateral. Hence there is a need for risk management, for instance:

    • Diversification into multiple loans, and
    • Invest what one can afford to lose (non-emergency funds).

  • Community Manager

    @limjimmy Indeed, these are important factors for risk management!

    Seems like we've 4 votes for "Yes and has always been" so far, and 1 for "Never really thought it was risky"!


  • Community Manager

    [Update]

    12 votes for "Yes and has always been" so far, and 3 for "Never really thought it was risky"!



  • @limjimmy said in [Poll] Do you think P2P is a risky investment?:

    I have been investing in P2P loans since December 2016, and till this day I still consider it a risky investment, especially those without collateral. Hence there is a need for risk management, for instance:

    • Diversification into multiple loans, and
    • Invest what one can afford to lose (non-emergency funds).

    Agreed, never put all your eggs into one basket. If you have diversified enough lets say to 100 different issuers, your portfolio can still take a very unlikely 10% default rate and still make decent returns. Currently all the p2p platforms in MY have default rate around 1-3% which are pretty good, then again p2p portfolio in MY still haven't "seasoned" enough yet. Once we've passed 24-36 months cycle then we will have better gauge on the portfolio quality.

    For comparison, most banks unsecured portfolio NPL rate hovers around 5-8%.



  • @kaweng88 why is 24-36 months considered a cycle?



  • No risk no gain, but I think the gains outweigh the risks. Love that we can diversify in such a micro and straightforward manner as well.


 

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