European investors cautious on 2024
The majority of European investors are taking a conservative approach this year and are maintaining portfolio volumes, new research has found.
Peer-to-peer lending platform Robo.cash surveyed 617 investors from 29 countries.
83 per cent said that 2023 met their expectations from the P2P market, while 73 per cent managed to achieve their investment targets and six per cent exceeded their goals.
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“The year proved to be quite successful,” said Robo.cash analysts. “The volumes of the continental P2P industry went up. Stock markets also gave investors ample profit opportunities and steered clear of critical collapses.”
Despite this, Robo.cash found that just 28 per cent of respondents intend to expand their investment portfolios in 2024.
Investors said they were cautious due to economic indicators such as inflation and interest rates (32 per cent), and geopolitical events (26 per cent).
“Similar statistics were observed in 2022,” Robo.cash said. “Investors are aware of the risks associated with the unpredictability of the economic situation, political conflicts and endeavour to balance them.”
The survey comes after Robo.cash analysis suggested that P2P has a place in “optimal” portfolios this year.
Analysts at the platform found that for 2024, investors should keep two-thirds of their investment portfolios in fixed-income instruments such as P2P loans.
They assessed 10 portfolio allocation models split across nine different investment assets to work out the most successful portfolio structure.
The analysis found that the most optimal portfolios will contain 64.9 per cent of fixed income assets, namely bonds, P2P investments and deposits. The remaining part of the portfolio should be made up of assets with a variable return (30.6 per cent) and foreign currency assets (4.5 per cent).
Read more: European P2P returns hit 10.6 per cent