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Don’t invest unless you're prepared to lose money. This is a high-risk investment.
You may not be able to access your money easily and are unlikely to be protected if something goes wrong.
Take 2 mins to learn more.
Why You Should Sign Up for Crowd2Fund's Smart-Invest
Grow your portfolio with intelligent automation
28th August 2024
Smart-Invest is a feature designed to make investing easier and more effective. With Smart-Invest, you can automatically invest in great British businesses, helping you grow your portfolio effortlessly. Read the article below to find out why you should consider Smart-Invest and watch the video to get started.
Why Choose Smart-Invest?
Automated Investing: Smart-Invest takes the hassle out of managing your investments. Set your desired risk level and savings goals, and Smart-Invest will automatically allocate your funds to carefully vetted businesses. This means you can enjoy the benefits of investing without the time commitment.
Maximise Returns: Combine Smart-Invest with an Innovative Finance ISA (IFISA) with up to £20,000 of tax-free earnings each year. This powerful combination allows you to grow your investments without paying taxes on the interest earned, all while supporting innovative British businesses.
AI-Powered Portfolio Management: Our intelligent system uses cutting-edge AI to manage your investments, helping to maximise your returns while keeping your portfolio diversified.
Full Control and Transparency: You remain in control of your investments, receiving alerts and notifications for every pledge or repayment. Smart-Invest handles the day-to-day management, so you can focus on other things.
Proven Success: Since its launch, Smart-Invest has been activated by thousands of investors who trust it to deliver strong returns. With over £3 million invested through the feature, it’s a proven tool for those looking to grow their savings efficiently.
Getting Started
Joining Smart-Invest is simple. Register for your IFISA on Crowd2Fund, set up your investment preferences, and let Smart-Invest do the rest. You’ll be supporting British businesses while growing your wealth in a tax-efficient way.
Past performance and forecasts are not reliable indicators of future results.
Your capital invested is not covered for compensation in the event of a loss by the FSCS.
Tax treatment will depend on the individual circumstances and may be subject to change. Please see our Risk section before making an investment decision.
Risk summary for P2P agreements or P2P portfolios
Estimated reading time: 2 min
Due to potential for losses, the Financial Conduct Authority (FCA) considers this
investment to be high risk.
What are the key risks?
You could lose the money you invest
Many peer-to-peer (P2P) loans are made to borrowers who can't borrow money from traditional
lenders such as banks. These borrowers have a higher risk of not paying you back.
Advertised rates of return aren't guaranteed. If a borrower doesn't pay you back as agreed, you
could earn less money than expected. A higher advertised rate of return means a higher risk of
losing your money.
These investments can be held in an Innovative Finance ISA (IFISA). An IFISA does not reduce
the risk of the investment or protect you from losses, so you can still lose all your money. It
only means that any potential gains from your investment will be tax free.
You are unlikely to get your money back quickly
Some P2P loans last for several years. You should be prepared to wait for your money to be
returned even if the borrower repays on time.
Some platforms may give you the opportunity to sell your investment early through a 'secondary
market', but there is no guarantee you will be able to find someone willing to buy.
Even if your agreement is advertised as affording early access to your money, you will only get
your money early if someone else wants to buy your loan(s). If no one wants to buy, it could take
longer to get your money back.
Don't put all your eggs in one basket
Putting all your money into a single business or type of investment for example, is risky.
Spreading your money across different investments makes you less dependent on any one to do
well.
A good rule of thumb is not to invest more than 10% of your money in high-risk-investments.
The P2P platform could fail
If the platform fails, it may be impossible for you to collect money on your loan. It could
take years to get your money back, or you may not get it back at all. Even if the platform has
plans in place to prevent this, they may not work in a disorderly failure.
You are unlikely to be protected if something goes wrong
The Financial Services Compensation Scheme (FSCS), in relation to claims against failed
regulated firms, does not cover investments in P2P loans. You may be able to claim if you
received regulated advice to invest in P2P, and the adviser has since failed. Try the FSCS
investment protection checker here.
Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance.
If you have a complaint against an FCA-regulated platform, FOS may be able to consider it. Learn
more about FOS protection here.
If you are interested in learning more about how to protect yourself, visit the FCA's website here.
For further information about peer-to-peer lending (loan-based crowdfunding), visit the FCA's website here.
