WHY SHOULD I INVEST IN THE INTEREST RATE PRODUCT OF FIXURA?
The average annual rate of return has been 8,3 %*. Fixura offers an investment possibility for long-term investors who want good and stable return with moderate risk. The product is not dependent on stock prices or interest rate movements and timing is not as important as when trading on the stock market or interest rates. When you have made your investment decision and transferred the assets to be lent you can focus on other projects and enjoy the return.*The average annual rate of return from 2010 to 2017 after fees and credit losses.
In the automatic investment feature you can choose your loan conditions. Investments will be made automatically when there are assets on your account. The automatic investment feature will spread the risk as much as possible and the maximum size of the loan amount invested into a single loan depends on the conditions that you have chosen.
When you have chosen the conditions for your portfolio, repaid loans and interest will be reinvested in new loans as long as you want. By investing through Fixura you easily create an optimized loan portfolio that works automatically.
MINIMIZE RISK AND INCREASE PROFIT
DIVERSIFY THE PORTFOLIO
It is important to spread the investments between a number of borrowers. Reinvestment increases diversification.
Reinvestment increases return. When the interest return is reinvested you benefit from compound interest.
OPTIMIZE THE RISK
If the conditions are too strict, your investment might not be invested into loans and it will stay on the Fixura account without earning any interest. The solution might be to optimize the risk of the portfolio. Profit and risk go hand in hand.
DEPOSIT AND INVEST
Regular deposits and investments increase return. By making sure that both capital and interest are always invested you maximise your investment return prospect.
WHO ARE THE BORROWERS?
Fixura has strict conditions for persons who apply for a loan. The loan applicant has to be 21-68 years old, have regular income and the person has to have been living permanently in Finland for at least 3 years. Persons with a payment default record cannot get a loan mediated by Fixura. All loan applicants will get a credit rating based on credit data from Soliditet (Bisnode Finland), their assessment of the creditworthiness of the person and Fixura´s own statistics.
Based on the credit rating the borrowers will be divided into five different star classes. You will, as an investor, choose your investment conditions in different star classes: interest rate, allocation, diversification and loan-time. The interest level is chosen between 6-27%. Our service only invests in Finnish peer-to-peer loans.
RETURN AND RISK
The investor gets return from the interest that the borrower pays. Investments are always connected with risk. There are three risks connected with the Fixura product: credit losses, instalment free months and early repayment of the loan. To minimize the risk of credit loss the borrowers are thoroughly scanned and divided into five different star classes. If the borrower makes use of the instalment free month authorised by law the loan time is extended accordingly. If the loan is repaid early, the passive assets of the portfolio are increased temporarily. To minimize passive assets the system reinvests immediately when it is possible.
It is important to remember that there are always risks connected with investments. Smart allocation of investments into many loans decreases the risks.
Interest return of peer-to peer loans is considered as taxable capital income in Finland. Interest return of investors resident in Finland is reported directly to the tax authorities. Credit losses are deductible in Finland for companies and since the beginning of 2018 also for private individuals.
Investors resident in other countries than Finland have to make reports of their investments to the tax authorities in the country of residence.