PeerBerry investors undeterred by inflation
Most PeerBerry investors are maintaining or increasing the size of their portfolio despite the inflationary environment, a new survey has found.
The European lending marketplace polled its users and found that 52 per cent are not changing their investment habits, while 21 per cent are increasing their investments this year.
24 per cent have reduced the size of their portfolio however, while three per cent are currently not investing.
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“The survey results show that some investors seek to offset the impact of inflation by investing more and generating more income; meanwhile, some may have lower opportunities to invest due to the increased prices when less income remains for investing,” PeerBerry said.
Peer-to-peer lending was, unsurprisingly, a popular asset class among PeerBerry investors.
When asked which type of investment has the best risk-to-return ratio, the most popular choice was P2P loans (29 per cent). This was followed by ETFs (20 per cent) and stocks (14 per cent).
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Bank deposits were cited by just seven per cent of respondents, despite successive increases to the base rate which has filtered down to savings rates.
48 per cent of investors said that P2P loans generated the highest profit for them this year, followed by 18 per cent of respondents who said stocks were their most profitable investment.
However, 18 per cent said they had experienced losses from P2P loans this year, only topped by investors who made losses from stocks (21 per cent).
“Some investors expressed disappointment with their investments in real estate, especially highlighting the German market,” PeerBerry said.
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Looking ahead, P2P loans were most commonly cited as the investment type with the greatest potential for stability and returns (25 per cent), followed by ETFs (19 per cent), stocks (14 per cent) and real estate (14 per cent).
When it comes to investing in loans, short-term loans were seen as the most attractive by 34 per cent of respondents, followed by property loans by 16 per cent.
Investors had mixed views on the future of the economy. 13 per cent believe inflation will start to normalise at the end of this year, 29 per cent think the situation will improve in 2024, 31 per cent say 2025 and 27 per cent do not know.
1,029 investors responded to PeerBerry’s survey from 46 countries, most of whom are 26 to 55 years old.