Possibly not diversified enough? My rule of thumb is at least 200 loans for each grade - the more the better. I don't do E's or F's but would be wanting more like 300 of each if I did as the higher the risk the higher the volatility.
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more diversification may have helped but I should have had enough that the benefit would be minimal. More loans should just push me even closer to the average RAR which I was close to anyway. It would interesting to know the platform RAR per grade.
I don't see why there is a need for so many in each grade - I think total loans regardless of grade is the key to diversification.
An automatic withdrawal function would now be useful. Saves having to login to arrange each cash withdrawal payment.
You got me thinking maybe I was being too cautious so I did some googling....
http://www.lendingmemo.com/risk-dive...n-p2p-lending/
That's great. Thanks for that. I would like to see a Harmoney version.
Dispute my higher risk, I think I did have enough loans to diversify. I think it also prices my point, that more loans would just result in reversion to the mean which is what I have seen occurring.
What is unknown is what is what is the RAR for each grade. If you look at the link you provided for the overseas version, B grade looked to have the highest, with the two riskiest grades being zero.
So potentially I could have been an outlier and been sitting on the red line, so more loans could have improved my position slightly, but statistally speaking, I was probably average so probably would have seen minimal difference. But with the new fee structure, the new average would have been lower so I have decided to put my money elsewhere.
I will probably still be invested here in a couple of years time as the loans do wind down, sound I do jump back in, I will probably pick a lower risk profile, which may give me a higher return.
Conclusion - I want to see RAR by grade.