By Nick Sudbury Investors looking to tap the peer-to-peer (P2P) lending boom would do well to seek out a suitable investment trust in the sector. Investment trusts are the ideal vehicle to provide exposure to less liquid parts of the market, as investors are able to buy and sell the shares on the stock exchange whenever they want without it affecting the underlying portfolio. The best known examples include property, private equity and infrastructure funds, but it is also relevant for the relatively new area of P2P lending.
P2P has grown rapidly since the 2008 financial crisis as it allows people to bypass the banks with individual investors able to lend to individual borrowers. Cutting out the middleman makes it possible for investors to earn a better return and for the borrowers to pay a lower rate of interest.
The advantage of investing via one of the funds is that it offers much greater diversification across different borrowers, platforms and geographies. You also benefit from the due diligence of the investment manager in selecting the best loans and don't have to tie your money up as you can sell your shareholding whenever you want… Click Here To Read The Full Story The Master Investor Market Report - The FTSE 100 closed the day at 7,024.01, a decrease of 46.87 points.
- The FTSE 250 fell 116.92 points to finish at 17,956.28.
- The FTSE All Share dropped 25.03 points to finish at 3,813.99.
- The FTSE AIM All Share ended the day at 826.72, down by 0.41 points.
Miner Fresnillo (FRES) said that silver production for the three months ended 30th September was up by 6.7% relative to the same period of last year at 11.8 moz., but 9.4% below the second quarter due to lower ore grades and recovery rates. Gold output increased by more than 20% and management said that the business should meet its full-year production targets. The shares fell by 11p to 1,636p. |
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