As an Amateur Investor I am always looking of ways to spread my investment risk.
Shares, unit trusts and investment trusts make up the majority of my investing capital. Next comes cash ISAs, fixed rate bonds and savings accounts.
I have a flutter on Premium Bonds but haven’t “won” anything yet (even though everyone else I know who owns Premium Bonds has!).
Quite some time ago I put some money into Zopa, the peer-to-peer lending service. To date this have yielded about twice what I would get in a “good” savings account.
While Zopa concentrates on matching individual “lenders” with individual “borrowers”, Funding Circle lends out money to businesses who have decided (or been forced) to seek out lenders other than high street banks and building societies.
Funding Circle works in a similar way to Zopa. You, as the lender, deposit money into your account and that money is lent out to businesses. You can either switch on auto-lending which automatically chooses which borrowers to lend money to, or you can choose to lend money to specific businesses after reading their profile, borrowing requirements, financial profile etc.
I’ve only put a small amount of money in at the moment, but I’ll write more at a later date about this part of the Amateur Investor portfolio.