Quote Originally Posted by andrewfreestuff View Post
That's a good point, I hadn't thought of that. I'm no maths whizz!



Could you explain that further? I only put a single $25 ticket into any loan so I have as good a diversification as I could get I guess ? Thanks
As a rule of thumb it is best to have at least 100 loans of each of the higher bands in which you invest( 100 A's and 100 B's). The lower the grade the higher the number needed to get full benefits of diversification. This is a bit counter-intuitive because the temptation is to dabble with a few higher risk loans whereas you should actually have more to reduce risk of negative returns. I also do C and D but have several hundred of each based on statistical research by others. I don't think the returns on E & F are worth the risk at this point but with a couple of years of data might re-think. Good luck!