Go & Grow Bondora is a new investment strategy released by this P2P lending platform. It is already available to all users (2019)
Until now if I wanted to buy Bondora loans I had to go through the sleek “Portfolio Pro” or the basic “Portfolio Manager”. Some very advanced users stick to the API, but most people just don’t need the API.
Now the Bondora Go & Grow 6,75%* is coming and I want to know if it is worth my attention or not!
Portfolio pro Vs. Go&Grow:
I start to say that I always use Portfolio Pro since it allows me to get the risk profile I want (rather low) without too much thinking. My average annual yield is above 10/13%. I always avoid the lowest rating Bondora loans since I know the risk is often too high, and the debt collection may take ages.
Bondora Portfolio Manager is not accurate, but it is a very fast way to start and deploy some capital in high revenue loans. It is a simple tool for beginners or for people with little time to spare.
Bondora Go & Grow is another good tool for beginners, but also for those who want to lower their risk profile without too much thinking.
Are money are always available on Bondora?
The revolution here is the permanent availability of the invested capital on Go & Grow
Investors are able to withdraw their capital at any time. This is something really new and very interesting for people willing to invest fast and efficiently without facing the learning curve any tool brings with.
Ordinary investors on Bondora have to sell their loans before transferring their cash to the personal bank account, Go & Grow investors will always have the money available to them.
I won’t be popular saying that it is not a good thing. Why? Because long term investing is perfect until we don’t withdraw money. Being allowed to do so can be worse and lead into “temptation”.
Lower interest rates Go&Grow
As you can imagine there is a price to pay for such a comfort. The downside here is the lower interest rate. This is set to 6,75%* fix for go & Grow users.
Since we know that Bondora has some of the highest interest rates of the P2P lending, experienced users may (understandably) be not very interested, for now and could stay with the Portfolio Pro tool.
The average Bondora user normally earn between 8% and 20%, even if most people just hover around 11% yearly.
Bondora is not risk-free and it will never be, but this new tool is undoubtedly a cool one especially for newbies. Investing this way your capital stays at risk as it does with almost any investment.
Bondora also says the 6,75%* yield is not guaranteed, but they are very confident with this calculation. They stress the fact that it is absolutely hassle-free and automated, without any management fee.
To sum up, with Go & Grow you can:
Earn 6,75%* / year
Invest without complicate settings
Have instant liquidity
Have a diversified portfolio
Only pay tax on withdrawal
Create multiple portfolios
Share the portfolios with people you care
Go & Grow has advantages and disadvantages. I find clever the “gamification of saving” on this table!
How to migrate to Bondora go & grow
Investors who want to transform their actual portfolio in a Go & Grow form are allowed to do so
It’s enough to create a new Go & Grow and click on “Add Existing Investments”. Doing so we authorize Bondora to sell our loans and liquidate our portfolio (even if for a lower amount ⚠️). The amount will be invested in your Go & Grow.
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“As with any investment, your capital is at risk and investments are not guaranteed. Before deciding to invest, please review the Bondora risk statement or consult a financial advisor if necessary.”
*The yield is up to 6.75% per year.
NOTE: The indications contained in this analysis are to be considered mere information tools and do not intend to constitute in any way financial advice, solicitation to the public savings, suggest or promote any form of investment.