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More loans = less volatility
![Quote](images/misc/quote_icon.png) Originally Posted by Saamee
"Typically the fewer "unsecured" loans you invest the more volatile your investment is"...
I'm struggling to follow the logic there! My mind tells me that the more "Secured Loans" you have = A Less Volatile investment you own??
Perhaps he meant the more loans (whether secured/unsecured) you buy, the lesser the income volatility = not too different a view from yours, Saamee. Hence, the fewer "unsecured" (or secured, in your case) loans you invest in, the more volatile your investment ...
Diversification via greater quantity of loans (and in his case via providers, loan grades, NZD/AUD etc)
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