Can investors beat inflation with the highest-yielding IFISAs?

With inflation hovering around the 10 per cent mark, investors may be looking to diversify their portfolios with some higher-return products.

It should be noted that there is a correlation between risk and return, but savvy investors with a sufficient financial buffer could benefit from considering some of the highest-paying Innovative Finance ISAs (IFISAs) on the market.

Here we round up some of the IFISAs available with the highest returns.

CapitalRise – returns of up to 14 per cent

CapitalRise offers investors access to prime real estate investing opportunities in London and the Home Counties. There’s a minimum investment of £1,000.

Earlier this month, CapitalRise said it had originated more than £200m in loans since inception.

P2P ratings and research firm 4thWay has given CapitalRise an Exceptional 3/3 4thWay PLUS Rating.

Crowd2Fund – returns of up to 16 per cent

Crowd2Fund is a P2P business lending platform that supports British entrepreneurs and was one of the first IFISA providers. Earlier this year, it raised its target interest rates to 16 per cent.

This month, the platform updated its credit policy in light of economic conditions and will now carry out monthly revisions of its credit policy, rather than quarterly.

“A core focus is around adjusting the interest rate offered to investors so that it accurately reflects the risk they are taking,” the platform said.

Fund Ourselves – returns of up to 15 per cent

Moving from prime property to payday loans with Fund Ourselves. Investors’ funds are automatically lent to at least five available borrowers to boost diversity.

The interest rate the investor chooses determines the maximum borrower estimated default rate they are lending to. For example, if you choose a 10 per cent return, you will be lending to borrowers with an estimated 10 per cent chance of defaulting.

Shojin Property Partners – returns of up to 15 per cent

Shojin is an investment platform that specialises in junior finance for property projects. It co-invests its own funds alongside investors on every project, meaning it only profits when the project is successful.

There is a minimum investment of £5,000, which can be held in the IFISA wrapper.

Shojin has recently entered into a number of new markets including the UAE and India, whilst growing its loanbook to £45m and returning more than £4m to investors.

Read more: Shojin Property Partners raises £3m to fund global expansion plans

Read our IFISA guide for a comprehensive list of all products in the market.