Loans backed by bricks and mortar
Octopus Choice could give your clients something that is intended to sit between cash savings and stock market investments in terms of targeted risk/return profile. It’s a smart way to add another asset class to their portfolio: property-backed peer-to-peer (P2P) lending.
Clients like cash. But they also know low-interest rates mean their savings are at risk from inflation. At the same time, the stock market isn’t for everyone.
Octopus Choice offers clients something else. A simple way to target an annual return of 4%, with no fixed term, by investing in secured, property-backed loans.
Some risks to keep in mind
You should keep in mind the value of an investment and any income from it, can fall or rise. Your client may not get back the full amount they put in.
Money invested through Octopus Choice is concentrated in loans backed by property and could be affected by market conditions. For the same reason, instant access to your clients’ invested capital cannot be guaranteed.
Peer-to-peer investments are not protected by the Financial Services Compensation Scheme (FSCS).
Understanding the asset class
Asset-backed lending is one of the oldest ways to invest. Peer-to-peer lending uses today’s technology to make this asset class accessible to your clients.
To learn more about how P2P works and how it can help your clients, start by reading the PFS Good Practice Guide on P2P, which you’ll find below. To further explore P2P, read the Intelligent Partnership guide, which is also below.
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We’re always happy to hear from you. To learn more about Octopus Choice and the kind of clients it could work for, get in touch.
Nothing on this page constitutes investment, tax or legal advice. This product is not suitable for everyone, so we recommend investors speak to a financial adviser, and read the product brochure, which is available on this page, before deciding whether to invest.