Should Income Investors Consider P2P Lending?

Peer-to-peer lending promises enticing rates of income. How do the investment trusts in this space stack up?

Holly Black 26 June, 2018 | 2:26PM

peer to peer lending loan investing for income investment trust closed end fund

Peer-to-peer investment trusts now have around £1 billion of assets under management between them, but the jury is still out on whether or not they are worth backing.

P2P trusts launched four years ago as direct peer-to-peer lenders including Zopa and Funding Circle were fast gaining traction. The trusts promised exposure to hundreds, or even thousands, of different peer-to-peer loans, in return for a juicy dividend yield.

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About Author

Holly Black  is Senior Editor, Morningstar.co.uk

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