Kapital Boost is an Islamic crowdfunding platform based in Singapore, serving small businesses in the region. Although Islamic crowdfunding is a niche area, it has the potential to grow quickly given the large Muslim population in Singapore, Malaysia and Indonesia. We met up with Erly Witoyo, the founder and partner at Kapital Boost recently to understand more. Below are … [Read more...]
Portfolio Management for P2P Investors
If you are serious about crowdfunding and want to invest a meaningful amount of money into p2p loans, you will need to pick up basic portfolio management skills. This will help reduce risk and maximize investment return. Warning: This post is for intermediate investors who already have some experience in p2p lending. If you are new to p2p lending, we suggest you read our … [Read more...]
Building up our Crowdo Portfolio
After a slow start, our Crowdo Portfolio generated 1.14% cash return in September (or 13.6% in annualized terms). We started with IDR 200m (USD 15k) and our portfolio is now diversified across 140 loans. Our risk is relatively low as almost all our loans are secured against gold or jewelry collaterals. Looking ahead, we plan to slightly increase our exposure to unsecured loans … [Read more...]
P2P Investment Strategy: Active versus Passive
What is your game plan for p2p lending? Do you intend to pick p2p loans yourself? Or would you rely on the crowdfunding platform to do the loan selection for you? The former is known as active investing; the latter passive investing. Both have their pros and cons, but smart investors that understand both strategies would be able to use both to their greatest advantage. Active … [Read more...]
Is your P2P platform’s interests aligned with yours?
P2P lending platforms earn fees from matching borrowers with investors, but investors bear the full risk if loans default. Several failed crowdfunding schemes were reported in the newspapers recently. Some of the cases may be due to platforms churning out risky loans. Investors should pay attention to the risks associated with the “originate and distribute” model and look for … [Read more...]