P2P Lending: 17 months in

A lot has changed since I last updated my P2P lending endeavour (See: P2P Lending: 13 months in)

For one,  Funding Societies Malaysia has revamped the user interface of its mobile app on Android platform. The new interface gives more clarity and transparency regarding all facets of your P2P investments. And, it’s hard to deny that it looks splendid too.

At a glance, I can easily ascertain the performance of my P2P lending investment which, at the time of writing, is 11.93% per annum. This is a mild increase from the 11.84% since my last update in August 2018.

From the above screenshot (on the left), the dashboard of my account now clearly states “Total Income” which constitutes interest, late interest and bonus due to referrals.

From there, it is easy to determine that I’ve profited a total of RM440.48 of interest (inclusive of late interest). By comparing that to the interest received (including late interest), in August 2018, in the amount of RM271.81 (See:  P2P Lending: 13 months in), my returns increased by RM168.67 or a whopping 62%. This is achieved by consistently reinvesting all of the interest which I have earned since the onset of my investment in P2P lending through Funding Societies Malaysia. This exponential increase, to me, is a sound indication of the workings of compound interest.

In selecting a loan/note in which to invest, I either self-pick or use autobot. Autobot is a feature by Funding Societies Malaysia wherein you set your investment perimeters and your funds will be automatically invested in any loan/note that matches your perimeters. It is very helpful feature where time is constraint. On the other hand, when self-picking, I usually review the fact sheet of each loan/note and apply a number of considerations to ascertain whether the loan/note under consideration is viable for investment. See: P2P Financing Tips

And if you can’t already tell from the eye-catching information, which can be easily noticed from the left screenshot of the dashboard above, there are no defaults on my principal.

Spurred by much success from P2P Lending, through Funding Societies Malaysia, I did not hesitate to deposit additional RM2,000.00 into my account on 1 December 2018. As it stands, I’ve deposited a total of RM5,000.00 and intend to invest more, next year.

Until then, happy investing! Merry Christmas and a happy new year!

REFERRAL PROGRAM

If you are new to P2P lending, or would like to add some diversity to your investment portfolio to include P2P lending, you’d be delighted to know that Funding Societies Malaysia has a referral program where they will top up an additional RM50.00, FOR FREE, into your account, once you have deposited and invested a minimum of RM1,000.00.

To participate in this promotion, please register an account via this LINK (be careful not refresh the link before completing the registration as it will affect the promotion code), or alternatively, use the promotion code: j1mzpcw5 when registering through Funding Societies Malaysia.

 HELPFUL LINKS

Click the link if you would like to know more about investing in P2P lending with Funding Societies Malaysia.

If you enjoy reading this write-up, please share and like Bursa:Going Long on Facebook for more updates and analysis of investment-related topics.

If you are keen on reading all things P2P lending, click on this LINK.

 

P2P Lending: 13 months in

It has now been 13 months in since I’ve started investing in P2P Lending through Funding Societies Malaysia. Many have their apprehensions and concerns about P2P Lending when it was first introduced in Malaysia. These apprehensions and concerns manifest themselves because P2P is an asset class which is foreign to us, Malaysians.

Fortunately for me, I have, over the course of a year, been reading much about P2P lending. The knowledge which I’ve gained about P2P lending is put into words on this website, where I’ve laid out its pros and cons, its risks and rewards, and tips and tricks. If you are curious about P2P lending, but clueless as to what it is, a good chunk of this website is dedicated to P2P lending.

So, how have I done so far?

screenshot funding societies malaysia
Screenshot of my account

Well, quite astounding actually. Over the course of 13 months, I’ve profited RM271.81, in interest (excluding service fees). That’s an annualised return of 11.84% per annum, which is simply much higher than the average Malaysian fixed deposit interest rate, of about 3-4%, offered by financial institutions.

I’ve also paid RM46.42 as reasonable fee to Funding Societies Malaysia for their services which include, among many others, maintaining the P2P platform, conducting due diligence, arranging investment opportunities, keeping tabs on repayments from borrowers and keeping a record of each investor’s investment.

Investing is not without its risk; this is also true with P2P lending. In my experience, although there were a few intermittent late repayments from borrowers, I am glad to know that none of which translates into a default. To put simply, a default is when a borrower fails to make repayments. Late repayments, on the other hand, are not considered a default. However, late repayments attract late payment interest which is slightly higher than the agreed interest rate. For more information, please read P2P Lending: What happens when a default occurs?.

Funding Societies Malaysia has the lowest default rate in South East Asia – less than 2%. This suggests that they’re observing an effective due diligence process prior to approving a note/loan for crowdfunding. Hence, a vigilant due diligence process ensures that only quality notes/loans are approved for crowdfunding.

Another good practice to be had, in ensuring that you’re well protected from any default, is to diversify across many notes/loans from various industries. Diversification provides an adequate buffer against the risk of losing a substantial portion of my investment because risks are spread out thinly over 27 different loans/notes. Generally, I invest between RM200.00 to RM100.00 in each loan/note. If you’re unsure as to how much to invest in an individual loan/note, please read P2P Lending: How much to invest in a note/loan?

REFERRAL PROGRAM

If you are new to P2P lending, or would like to add some diversity to your investment portfolio to include P2P lending, you’d be delighted to know that Funding Societies Malaysia has a referral program where they will top up an additional RM50.00, for free, into your account, once you have deposited and invested a minimum of RM1,000.00.

To participate in this promotion, please register an account via this LINK (be careful not refresh the link before completing the registration as it will affect the promotion code), or alternatively, use the promotion code: j1mzpcw5 when registering through Funding Societies Malaysia.

 HELPFUL LINKS

Click the link if you would like to know more about P2P financing with Funding Societies Malaysia.

If you enjoy reading this write-up, please share and like Bursa:Going Long on Facebook for more updates and analysis of investment-related topics.