I have around 1800 € in Mintos. I have been doing the math on P2P and it does not look good compared to stocks for long term because of foreign currency risk and taxation of interest rate gains as income.
Those 12 % or a bit more you may ideally get will translate into 8 % before inflation at a 33% marginal tax rate. (After losses you may end up at 7 %.)
This is not much more than the historical 5-7% (depending on the period) that you have for global stocks (whose gains are mostly tax free in Switzerland except for dividends).
What role might P2P have in a portfolio?
The most viable application I have found so far is using something like Bondora Go&Grow to park a few thousand Euros for a few years to be spent on vacations because it is pretty liquid. You get 6.75 % and can withdraw at short term.
Also shorter term loans (say, up to two years) might be useful to park some fun money that might or might not be needed and earn a bit more. This should yield more than Bondora GG.
How do you handle this?
Do you see any long term applications of P2P in a portfolio?
(Please spare me the remarks that Mintos, Cashare and others are just scams. I am aware of the bad reputation.)