With inflation hovering around the 10 percent mark, investors might look to diversify their portfolios with some higher yielding products.
It should be noted that there is a correlation between risk and return, but savvy investors with sufficient financial buffers could benefit from considering some of the highest paying Innovative Finance ISAs (IFISAs) on the market.
Here we round up some of the highest yielding IFISAs available.
CapitalRise – returns of up to 14 percent
CapitalRise offers investors access to world-class real estate investment opportunities in London and the Home Counties. There is a minimum investment of £1,000.
Earlier this month, CapitalRise announced that it has issued more than £200m in loans since its inception.
P2P ratings and research firm 4thWay has given CapitalRise an exceptional 3/3 4thWay PLUS rating.
Crowd2Fund – returns of up to 16 percent
Crowd2Fund is a P2P business lending platform that supports UK entrepreneurs and was one of the first IFISA providers. Earlier this year, it raised its target interest rate to 16 percent.
This month, the platform updated its credit policy in light of economic conditions and will now conduct monthly reviews of its credit policy instead of quarterly.
“A key focus is to adjust the interest rate offered to investors so that it accurately reflects the risk taken,” the platform said.
Fund Ourselves – returns of up to 15 percent
Go from prime real estate to payday loans with Fund Ourselves. Investor funds are automatically loaned to at least five available borrowers to encourage diversity.
The interest rate chosen by the investor determines the maximum estimated default rate of the borrower to whom they lend. For example, if you choose a 10% yield, you are lending to borrowers with an estimated 10% probability of default.
Shojin Property Partners – Returns of up to 15 percent
Shojin is an investment platform specializing in junior financing for real estate projects. In addition to investors, it also invests its own funds in each project and thus only benefits from the success of the project.
There is a minimum investment of £5,000 that can be held in the IFISA wrapper.
Shojin has recently entered a number of new markets including the UAE and India while growing its loan book to £45m and returning more than £4m to investors.
Continue reading: Shojin Property Partners raises £3m to fund global expansion plans
Read our IFISA guide for a comprehensive list of all products on the market.