P2P portfolio 6 Months performance

I  have been reviewing multiple P2P platform and been investing in 3 platform:

  • I2I
  • Faircent
  • Lenden Club.

6 months Performance of my portfolio:

I2I

As it is evident  I have made around 20% return pretax which is not bad.

Defaults up till now = 0

EMI in delay = 1000

I2i lending I use to lend to mostly people working in government firms who I feel have stable job and low correlation with economic changes in the world.

Ticket size:5000

I always use 5000 Rs to stay diversified across multiple borrowers

LENDEN CLUB:

 

My Lenden portfolio has given me higher return compared to other platform.One reason is I use this platform to give 2 months high interest loans.The risk is higher but minimum ticket size is small(500) which helps me to diversify. Secondly due to short term loan churn is very high and if I see economy going bad or higher delinquency I have control over the book.

All investment are given to salaried people.

Faircent

Return from Faircent is in between I2I and Lenden. Majority of borrower are in business segment. In future I will like restrict my exposure to business group and will diversify to other platforms.

 

Another P2P platform I tried was Lendbox. Minimum investment is 10000 which is high because RBi restrict total investment to 10 Lakh which means I can do max 100 investments which is low.

I am in the process of trying Monexo and will update with the performance!

6 thoughts on “P2P portfolio 6 Months performance

  1. Hi can you explain a bit more about how when your ticket size in Lenden is 10% of that in I2I, you still remain diversified.
    Also, How do you measure/account diversification of the loans?

    1. Hi,
      Regardless of how many platform you are invested in your total portfolio is sum of all the loans. If I have invested in 100 loans in Lenden at 500 ticket and 1 loan in I2I at 5000,I am still diversified in totality but in I2I 1 default has higher impact on portfolio.
      Diversifying across each platform is also critical because you dont want 1 platform to spoil your total return due to few defaults. Offcourse in I2I to be diversified you would need more capital ,therefore it is important that your investment decision should be based on how much capital you have to invest.

      Measuring account diversification: When your total returns start stabilising and approaching platfrom NPA level it means you are sufficiently diversified. The more you invest across loans the better it is. Technically a million 1 rs loan investment is most ideal but not feasible. You have to qualitatively determine that.

      As a ball park figure your defaults/ total loans should be approximately equal to platform default rate.

    1. Have just started X category loan. its too early to say if its good .I am allocating 10% portfolio to it as of now

  2. I invest in Lendenclub with “unidentified risk” but the default ratio is coming around 10%. How about yours.

    1. 10% default is fine with Lendenclub as the ROI is around 48%. Mine is around 8.5% . if it crosses 13-14% then you need to revisit the strategy

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