Retail investors are diversifying and confident for 2021
Retail investors have been diversifying their portfolios and are confident about 2021, research from European peer-to-peer lending platform Mintos has revealed.
The annual survey, which was conducted in February, found that 77 per cent of investors have other alternative investments in their portfolio, 79 per cent also invest in stocks and 70 per cent in exchange traded funds.
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84 per cent said they increased their investments in stocks between March 2020 and January 2021, reacting to the surge of stock market popularity among investors globally.
64 per cent of investors said their portfolios are well diversified in loans issued by different lending companies in different countries.
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Almost three quarters (73 per cent) of European investors who expected both gains and losses in their investments in 2020 said they will continue to invest in various assets in 2021.
Despite the pandemic, retail lenders are optimistic this year. 67 per cent are confident that their current investments in loans across all platforms they use will bring the return they expect this year and 61 per cent are satisfied with their income from investing in loans on all platforms they use.
Nearly two-thirds (63 per cent) of investors also said that they are planning to invest in loans between €1 to €5,000 (86p to £4,2812) in 2021, with 11 per cent thinking of investing more than €5,000.
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“In 2020, it felt like a big chunk of our investors paused and watched to see how the investments overall will be affected, also many investors proceeded to balance their portfolios with investment in stocks,” said Martins Sulte, chief executive of Mintos.
“Nevertheless, the confidence in investing in loans on Mintos seems to have returned by the end of the year, as illustrated by a crowdfunding campaign, which surpassed all of our expectations.”
