P2P Portfolio Analysis Dec’2019

Wish you all a very Happy New Year! Hope to find more interesting investment opportunities and hacks in 2020 .

In this post I will be covering two topics:

  • Analysis of the P2P platforms for 2019
  • New Loan and Invoice Products
  • Introduction to Model Portfolio

P2P Platforms performance

In the 2019 I experimented with multiple P2P platforms .Some of them proved to be successful while others felt short of expectations.

My year end status of investing across P2P platforms:

As it is evident there are 4 platforms where I am currently putting more money , while 2 where I am only reinvesting and other 2 where I am lowering my exposure.

Current Yield and NPA:

In LendenClub/Cashkumar I will be gradually taking out money every month and invest it in Finzy if the performance stays consistent for the next few months!

In RupeeCircle I will be increasing by capital in the next few months while I will keep it constant in OMLP2P and FinancePeer and monitor it closely.

New Product Evaluation:

Couple of new products were available for investors recently.

  1. I2IFunding Education Loans

2. TradeCred invoice with Bank Guarantee

3. Finzy Investment Review

I2I Funding Education Loans:

I2I has recently tied up with an online education company to provide loans to people who are

i2ifunding has partnered with a India’s leading online immersive live tutoring platform which offers live tutoring and personalized online coaching sessions to students from class 5 to 9 in Math and Sciences from both CBSE and ICSE boards. This loan is given for the purchase of online tutoring classes. Company (Tutoring platform) is a guarantor in these loans and in case of default they will cancel the subscription of tutoring classes and repay the outstanding loan amount. “

Prima Facie the deal seems a good bet as guarantor is the company which will receive the money from the borrower thus the loan is hedged to an extent

TradeCred Invoice with Bank Guarantee:

TradeCred has recently launched a few deals with Zetwerk.Interestingly in some of the deals the vendor has been provided bank guarantee which gives an additional level of comfort.

Zetwerk has recently raised 32 million dollar funding so I consider it to be well capitalized in the short term.

Also TradeCred has enabled instant liquidity options to its client. Any deal with less than 60 days to maturity can be instantly redeemed and money will be provided in T+5 days to the account.

I always recommend that people should do their own due diligence before making the final decision

Finzy Investment Review:

I started my investment in Finzy . The process is very simple in whichFinzy provides an option to create portfolio on your behalf and they distribute the money across various risk category.

Minimum investment is 1000 hence I was able to invest in 50 Loans. Finzy creates a group of 5 loans and calls it a portfolio. Each portfolio will have loans from different risk category.

I was able to create 10 portfolio of 5000 each. My dashboard looks like this now:

Finzy Portfolio does not pick any loans from C category. Average ROI after investing in all loans is around 17.9% . After Fees and NPA I expect to able to generate 14% return.The disbursal is a tad slow but that is not a major issue to worry.

I will closely monitor any NPA and delays and update in the performance in the subsequent months.

Portfolio Asset Allocation: From now Onwards I will create a page with my asset allocation across various assets. I will also publish performance of top rated funds/platforms etc in each asset category. It will make it easy for investors to compare and pick up assets for their portfolio.It will have assets across the globe and will be beneficial for people to start global investing.

Snapshort of the portfolio I am going to publish:

Footnotes:

Global Investing Platform Stockal

https://www.stockal.com/signup

under partner ID  use “Randomdimes” to get additional future benefits and renewal discounts

For buying zero cost MF and lowest Derivative Trading

Zerodha Referral

For alternate investment you can use these links

Finzy Referral Code:

https://finzy.com/invest?partner=MAN635

or you can apply the code : MAN635

Faircent Referral

I2I Account Referral Link

(First Use the link to register then add the Code “discount50@i2i” while paying to get 50% off)

Rupee Circle Referral Code- PIND145
Rupee Circle

LendenClub Referral Code – LDC11989
LendenClub

OMLP2P Referral Link

OMLP2P

FinancePeer

(Use Code MNJ6547)

Invoice Discounting Platform TradeCred Link:

https://buy.tradecred.com/onboarding/apply-now/TC0152

For other Invoice discounting platform ping me on 9967974993 or mail me on rohanrautela9@gmail.com

Randomwalk

I dabble in Quantitative finance,Analytics P2P investing,Derivative trading and Product development.My goal is to help people create low cost optimized portfolio .

10 thoughts to “P2P Portfolio Analysis Dec’2019”

  1. Hello, Have you tried tradecred yet?I would like to know if there are any unknowns(like any hidden fees) about this platform.I do not see enough info on their website.

    1. Hi Ashok,
      I have tried TradeCred .If you check out my homepage you will get to see the various Invoices I have invested in. Also the referral is available on the homepage(you can register for free)
      They generally charge a fees for managing the platform and they display the net IRR you will get(after fees) ,you will get exactly that amount which is displayed.

  2. Why are you investing in Finzy when other platform like Ruppeecircle gives you better returns?
    Also, Have you tried Monexo? I feel though their fees is high their collection is pretty good?

  3. Thank you. Great information. I am from Mumbai and want to start with 50k or 1 lac. I got good reviews online for Rupeetalk and Lenden. I prefer small amount loans with good interest rate. So which one you suggest best to start with.

    1. I will suggest FInzy as you can start with 1k per loans. Considering the current conditions they have the best prime borrower loans to invest.Good place to start

  4. Hello,

    First of all, thanks for the great work that you are doing by creating awareness about alternate investment opportunities.

    I have a question regarding Faircent Group Loans (Education loans). I recently invested some lump sump amount in this product and to my surprise the entire lump sump amount proposal was invested in only 1 borrower profile. I am a bit worried as it is against the very fundamental rule of P2P Lending (i.e. diversification). I am not sure if this is a normal process with Faircent or it only happened with me.

    Is this how the Group Loans work in Faircent ? There is very little material available on their website. It would be great if you can share your experience

    P.S: The response from Faircent team on email queries is extremely sluggish.

    1. Thanks Anuj for the kind words.
      Faircent group loans work that way, the product has internal diversification i.e money is pooled across multiple borrower .Consumer and education loan is the only category I have invested there. Dont like the term loans due to too many defaults
      Honestly in the current market condition be wary of pool loans and risky borrowers. Restrict yourself to i2ieducation loans,Rupeecircle short term loan and FInzy prime borrowers only.once lockdown is over and things are normal then only consider more investment inP2P
      Infact you can use short term invoice discounting of 1-2 top companies and rest keep in cash and invest in equity and REIT (Indian and global) if it crashes further as risk reward would be favourable from those level!!

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