What's your criteria for exiting a P2P platform?


  • Community Manager

    Hey guys!

    Spotted an interesting question posed by newcomer @webnomad within this thread:

    What's a suitable criteria for platform exit?

    Thought I'd mirror this question to everyone else as well - do you have an action plan which involves exiting platforms? What is an underperforming portfolio to you?

    And what would be your exit strategy? e.g. switch to unit trusts, fixed deposits etc.?


  • Community Manager

    It could also depend on the goals that you have set for your P2P portfolio.

    A x% yield could be one investor's goal, and could be another investor's lower limit!

    You may wanna check out this other thread on goal setting for P2P investments :)

    Also, @antoniomc27 has kindly shared his P2P returns excel tracking sheet here!


  • Contributor

    Many factors. Some of them are:-
    a. Trusts on the platform operators
    b. Ignoring customers
    c. Gov regulation like taxes
    d. Foreign Currency drastic movement
    e. Defaults statistics
    f. Recovering default notes
    g. # of loans available and quality loans
    i. asset allocation switch


  • Emergent

    Too much idle funds for extended amount of time. I pulled out 1k from CM and placed FS last year because of this.

    I closed out my stash away because I can do better in P2P or my own investing.



  • too much defaults case and unable recover the return may become -ve... pulling out from FZ...



  • @ktinvest said in What's your criteria for exiting a P2P platform?:

    Many factors. Some of them are:-
    a. Trusts on the platform operators
    b. Ignoring customers
    c. Gov regulation like taxes
    d. Foreign Currency drastic movement
    e. Defaults statistics
    f. Recovering default notes
    g. # of loans available and quality loans
    i. asset allocation switch

    Hey @ktinvest, "gov regulation like taxes" & "asset allocation switch"? In what sense!


  • Contributor

    @webnomad
    gov regulation like taxes = gov could one day impose extra taxes on P2P transactions and of course this will eat into our net margin.

    asset allocation switch = this is specific to each individual. P2P lending is a high risk investment product. An investor could be re-balancing his portfolio and decide to shift more fund into P2P or away from P2P.



  • @ktinvest I see... Thanks :) actually, what kinda tax would you be referring to? Since there already is income tax imposed on net returns?


 

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