My investments are still on the same three peer-to-peer (P2P) lending platforms, namely Capsphere, Fundaztic, and Funding Societies Malaysia. The results are as on 30 September 2023. In this article, I am going to follow the formulae of the previous year which you can see down here.
Total return = Total received profit ÷ Total capital employed
Annualised return = (1 + total return)(1/N) – 1
where N is the years of investment
Default rate = Total default remaining principal ÷ Total invested amount
Capsphere
My investment started in September 2020. My total return from this platform is 29.17% (2022: 19.23%) and my annualised return is 8.91% (2022: 9.19%). I still have the same defaulted note as last year but my default rate has dropped to 0.83% (2022: 1.34%).
Fundaztic
This is the sixth year since I started my investment on this platform.
My total return on Fundaztic equals to 136.11% (2022: 124.38%). This translates to an annualised return of 15.39% (2022: 17.54%). My default rate is 14.80% (2022: 13.58%), including write-off. It has been increasing throughout the years.
Funding Societies Malaysia
This is my first P2P lending platform. I started investing here since June 2017.
My total return on this platform is 51.18% (2022: 50.23%). It is equal to an annualised return of 7.13% (2022: 8.48%). The annualised return has dropped again compared to last year. However, I am not too sure why the total return only increased marginally. Perhaps it is due to my action of investing in notes with short tenure and/or low interest rate.
My default rate on Funding Societies Malaysia has decreased to 2.47% (2022: 2.63%).
Conclusion
To simplify the comparison, I am going to put the returns and default rates in the table below.
| Platform | Total Return | Annualised Return | Default Rate |
|---|---|---|---|
| Capsphere | 29.17% ↑ | 8.91% ↓ | 0.83% ↓ |
| Fundaztic | 136.11% ↑ | 15.39% ↓ | 14.80% ↑ |
| Funding Societies Malaysia | 51.18% ↑ | 7.13% ↓ | 2.47% ↓ |
The returns on these P2P lending platforms are still better than the ASNB fixed-price funds. My total return from P2P lending platforms is 57.06% (2022: 53.15%), roughly equals to annualised return of 7.81% (2022: 8.90%).
I only activated the auto-investment function on Capsphere but not on the other two platforms. This is because I have more confidence on the asset-backed notes on Capsphere and its default rate is the lowest. It seems like Capsphere is the best among the three based on its risk and return. For Funding Societies, I have decided to only invest in notes with interest rate of at least 8%. Otherwise, I think I would be better off putting my capital elsewhere.
I am going to continue my investment on these three platforms. Although the annualised returns from all platforms have declined, I am still satisfied with my returns from these P2P lending platforms.
Referral link
Below are the referral links to Capsphere and Funding Societies. By clicking on this link, I may gain referral reward from your registration with the platform. If you think I have done a good service in explaining the topic, please click on the link below if you have interest to register. Otherwise, you can always search Capsphere or Funding Societies Malaysia with Google and register yourself.
Capsphere: Link here – I might get RM 50 if you register and invest through this link.
Funding Societies Malaysia: Link here – If you register and invest through this link, both of us will get RM 30*.
*Terms and conditions apply.
