Diversifying the P2P portfolio is something that I advise anyone to do, especially now, when we have plenty of volatility in the stocks market as well.
In my quest to increase my P2P portfolio I discovered that there aren’t that many platforms that seem reasonable to me. Just giving your money away into a platform without documenting yourself isn’t something that I advise, due to the fact that there are so many scams on the internet.
In my search for a reputable company, I found Monestro platform, a nice P2P lending that has auctions for the lending portfolios. The good thing about auctions is that you could buy way cheaper than they normally are and to hit higher margins of profits. Some people mentioned getting up to 40%, but I assume that was when the platform was new.
After more than 2 months, I tested Monestro platform and I wasn’t impressed at all, I managed to buy in a total of 3 loans and all of them failed to pay in this period. The loans are overdue and the platform offers no guarantee that I’ll ever be able to recover my money.
Monestro peer to peer pros and cons
- regulated peer to peer platform
- auction model for loans that can result in high yields
- small number of lending auctions
- low volume lendings, you can’t invest 10k with this platform in a week
- no buy back guarantee
This being said, Monestro has some nice things in it but it’s far from a usable platform that I can recommend, so my advice is to wait until they improve their platform.