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 p2p Financing / Crowdlending in M'sia, Funding Societies, Fundaztic...any other

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e-lite
post Feb 18 2023, 09:00 PM

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QUOTE(hlyh1230 @ Jan 21 2023, 09:11 PM)
yup this was the 1st thing I did, and of course you don't find it in SC's list
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If that the case, maybe someone here can try borrowing from them? if they only take your money to "invest" but don't borrow out, then that is a red sea already devil.gif
audio technica
post Apr 6 2023, 10:18 PM

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don't trust funding societies. after 3-4 years im still barely getting my principal back. should have just dumped it all into FD
hlyh1230
post Apr 29 2023, 10:14 PM

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seems like P2P is dying out slowly...
jack2
post Apr 29 2023, 10:18 PM

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QUOTE(hlyh1230 @ Apr 29 2023, 10:14 PM)
seems like P2P is dying out slowly...
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90% default loans. who dare to lend money out...
xander2k8
post Apr 29 2023, 10:39 PM

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QUOTE(hlyh1230 @ Apr 29 2023, 10:14 PM)
seems like P2P is dying out slowly...
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With no long term track record of at least 30 years 🤦‍♀️ of course it will die especially when it is high inflationary regime

QUOTE(jack2 @ Apr 29 2023, 10:18 PM)
90% default loans. who dare to lend money out...
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Default because no long term track record hence no one dare coupled with bank scares around the world
froz3nnoob
post Apr 30 2023, 03:31 PM

Defeat is not the worst of failures. Not to have tried is the tr
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QUOTE(audio technica @ Apr 6 2023, 11:18 PM)
don't trust funding societies. after 3-4 years im still barely getting my principal back. should have just dumped it all into FD
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How come ? mind explaning ? ohmy.gif
froz3nnoob
post Apr 30 2023, 03:31 PM

Defeat is not the worst of failures. Not to have tried is the tr
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QUOTE(audio technica @ Apr 6 2023, 11:18 PM)
don't trust funding societies. after 3-4 years im still barely getting my principal back. should have just dumped it all into FD
*
How come ? mind explaning ? ohmy.gif
hlyh1230
post May 6 2023, 10:12 AM

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QUOTE(froz3nnoob @ Apr 30 2023, 03:31 PM)
How come ? mind explaning ? ohmy.gif
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It’s fairly straightforward, a lot of his notes went default.
batman1172
post May 6 2023, 02:49 PM

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QUOTE(audio technica @ Apr 6 2023, 10:18 PM)
don't trust funding societies. after 3-4 years im still barely getting my principal back. should have just dumped it all into FD
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I have some in funding societies. Making 10% nominal. But never increase investment cause it attract income tax
[Ancient]-XinG-
post May 6 2023, 09:13 PM

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P2p in malaysia will vanish soon

Covid make it worst
smartinvestor01
post May 6 2023, 10:07 PM

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From my personal experience, P2P is really not reliable investment. It don't think P2P is sustainable, as I find it hard to have the protection as investor against some directors who would only look for ways to default the investors' returns..

After experience it once, i would say its the last of my trial..
hlyh1230
post May 7 2023, 12:05 AM

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QUOTE(smartinvestor01 @ May 6 2023, 10:07 PM)
From my personal experience, P2P is really not reliable investment. It don't think P2P is sustainable, as I find it hard to have the protection as investor against some directors who would only look for ways to default the investors' returns..

After experience it once, i would say its the last of my trial..
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"we had joy, we had fun, we had stink notes in the sun..."
Eguias
post Sep 8 2023, 06:41 PM

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I just want to add my two cents on the topic. With the disclaimer that this is not financial advice, and you should DYOR, I'm currently invested in 4 P2P platforms for diversification:

1) Capbay does best so far, but I haven't been with them that long. They have a very low default rate at their statistics page. I don't see anything contrary to their claimed 8.2% p.a. net fees so far. Though remember you have to pay income tax at after that 8.2% net return rate. There is automated investment functions, but you can't adjust individual issuer/borrower exposure limit %, only general risk levels. Through an email, they said that they try to limit individual borrower exposure to approximately 4%. I prefer something like 2% though though I have not encountered a default yet over approximately half a year.

2) Funding Societies does slightly better than FD but their default rate is misleading due to including Guaranteed Investment Notes into their default calculation. Funding Societies issue a LOT of Guaranteed Investment notes. The Guaranteed investment notes usually return 6% p.a. gross, which is subject to 30% service fee (currently 0% due to promo). You still have to pay your income tax after that. Given that I did not notice the service fee in the Guaranteed notes previously, I estimate I made approximately 4.1% return p.a. net fees, post defaults, before tax overall on the platform over a year.

Their automated investment bots allow you to limit the issuer/borrower exposure % to limit impacts from defaults. However, I dislike how they don't have risk grading selection on their automated investment.

3) Fundaztic's default rate doesn't reflect my experience with them. I have a portfolio that has a much higher late and default notes than their calculated overall default rate. On a per note basis, I also experience higher default than their "bad" rate indicated on their note. This is despite most of my exposure is to A and B notes instead of C and D notes. This could either mean their risk grading is highly inaccurate, or their borrower pool is more uncreditworthy than expected.
For Illustration:
1 out of 44 A grade notes defaulted, or about 2.27%, although the bad rate indicated is 0.66%
1 out of 65 B grade notes defaulted, or about 1.54%, although the bad rate indicated is 0.77~0.81%
2 out of 92 C grade notes defaulted, or about 2.17%, which is within the indicated range of 1.37~2.92% (good)
2 out of 11 D grade notes defaulted, or about 18.18%, which is way above the bad rate indicated at 6.43% (bad)
Additional 12 notes are at least 30 days past due but below 180 days default time limit. That is about 5.66% of my 212 total investment notes are past due.

My overall default rate so far is 2.89% which is above their overall 2% default rate at their statistics page. Depending on how well the recovery of my defaulted and late notes go, I might divest from this platform. Based off my own rough calculation, I might have earnt an estimated 2.7% p.a. net fees, post defaults, before tax over about half a year.

4) B2B Finpal has the the fewest amount of borrowers/investment notes. I often do not get to see any investment notes that suits me, as I exclude the riskiest grade of investment notes. Recently, I have experienced a large delinquent amount (~11.5% of outstanding amount). They have not defaulted yet. Since there are few borrowers, it is hard to diversify on this platform. I might divest due to the lack of diversification opportunities, depending on how my delinquent notes go. Due to a VERY small sample size, I only can roughly estimate my returns to be about 6% net fees before tax subject over half a year, assuming the delinquent notes do not default.

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Overall, P2P lending has been a disappointing endeavour. With US short term treasury ETFs yielding 5~6% net fees, and local money market mutual funds returning about 3.5~4% net fees AND with no income tax applicable for individual Malaysian investors, it feels better much safer and more convenient to invest in those instead. Especially since you can access your money whenever you want with those options instead of having it locked up in a P2P investment note.

This post has been edited by Eguias: Sep 8 2023, 06:46 PM

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