How to Prepare for Investing in Marketplace Loans

So, you want to start investing in marketplace loans? Here are three things to consider as you create your OurMoneyMarket investor account and begin investing in marketplace loans.

Webp.net-compress-image-3 Investing in Marketplace Loans

Diversify

Like any good investment strategy, diversification is the key. This helps to reduce the overall level of risk in any investment portfolio. When investing in marketplace loans on the OurMoneyMarket platform, we make it easy for you to diversify across a pool of loans. Our investors can invest as little as $50 in any given loan and can invest in the following ways:

    1. Build a “shopping cart” of personal loans by reviewing and selecting individual loans;
    2. Quick Invest allows investors to choose from a conservative, balanced or high yield investment portfolio by simply entering how much they would like to invest; and
    3. Auto Invest which automatically reinvests principal and/or interest repayments based on investment criteria set by the investor.

Monitor Progress and Track Results

OurMoneyMarket’s 100% online investor portal allows investors to monitor the performance of their portfolios in real-time. Investors can see a breakdown of the borrower loans they have invested in, as well as the repayment performance on each loan. This allows investors to monitor the performance of different loan grades and borrower types to adjust their investment strategy to suit their risk appetite.

Readjust Your Strategy

It’s important to set an investment strategy before you invest in marketplace loans. There is a spectrum of risk across the marketplace, with loans graded A+, A, B, C or D. Remember that A+ loans are considered very conservative investments and D loans are considered high yield investments. Equally important, is to adjust your investment strategy over time as your risk appetite evolves. After you’ve tracked your results and gathered some useful data, reassess your strategy accordingly.

Are you ready to become an OurMoneyMarket investor?

Get in touch with us today on 1300 990 115 and have a chat with one of our friendly staff. Alternatively, you can chat with us over live chat at any time.

To learn more about peer to peer lending or how to invest in peer to peer lending check out the recent infographic we posted here.