European investors choose P2P for passive income
European peer-to-peer investors opt to lend through platforms for passive income and diversification, research has revealed.
A survey from European P2P platform Robo.cash found that a third (34 per cent) of investors said their motive for P2P investment was passive income. This was followed by portfolio diversification (27.8 per cent) and high returns (20.4 per cent).
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P2P lending is the third most preferred asset with 19.5 per cent of European P2P investors selecting this as the main asset class in their portfolio. This was behind shares (26.1 per cent) and exchange traded funds (24.6 per cent).
Cryptocurrency ranked sixth among other assets despite a July survey from Robo.cash revealing that two-thirds of P2P investors had it in their portfolio.
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“Fairly confident portfolio diversification indicates significant customer investment experience,” said Robo.cash.
“This is expressed both in the inclusion of various types of assets in investor portfolios, and in the choice of different strategies within one of the instruments. For example, only 15 per cent of Robo.cash customers invest just in short-term loans.
“At the same time, when choosing a specific P2P platform, investors are guided by various factors, which also indicates a quite deep understanding of what is happening in the industry.”
Earlier this month, a separate Robo.cash survey found that a fifth of European P2P lenders work in the IT and digital industries.