Peer-to-peer lending is set to be the “most optimal investment” of 2022, according to a new analysis.
In its latest study, analysts from the Robocash investment platform looked at data across a range of investment options, judging their potential by balancing risk and reward and extrapolating the value of assets using the Hodrick-Prescott filter.
The data found that the best-performing portfolios will contain a 35 per cent exposure to P2P lending – the largest allocation of all assets.
Bonds made up 23 per cent of this optimal portfolio, while exchange-traded funds (ETFs) and real estate investment trusts (REITs) made up 17 per cent, and stocks represented 11 per cent.
Cryptocurrency and futures took the smallest share, with seven per cent each.
Robocash analysts judged that a portfolio with this split could yield 13.7 per cent by the end of 2022.
“P2P lending fits into the acceptable risk level and offers higher returns than deposits and bonds,” the analysts said.
“According to our calculations, the optimal portfolio consists of 42 per cent of risky assets and 58 per cent of low-risk assets. In this case, some instruments can balance out the fall of others, thereby increasing the total portfolio return and minimizing the likelihood of losses”.
With this asset allocation, portfolio risk could potentially be 11 per cent, Robocash said.