If you’re looking to diversify your portfolio prosper is a good option. Full disclosure, I consider myself a regular person who tries to invest with his limited knowledge. I am not a banker or financier, just a working professional trying to maximize his money into investments that grow. I saw prosper as an opportunity to do this. Prosper makes it very easy on their app to invest and check your returns. I have been a lender with prosper for at least 5 years now. At one point I was ready to pull my investments from prosper after getting discouraged with some failed repayments by borrowers. While I did withdraw some of my investment, I still kept more than half of my initial capital investment tied into loans. I decided against fully withdrawing and closing my account after realizing it was a safer investment and offered decent but modest returns. If you’re looking for large returns north of 7-8% you’re in the wrong spot. But a return of 4-5% is very possible. You just can’t have all your money tied down in equities. That’s just not safe. And while some prosper investments fizzle when borrowers fail to repay, the vast majority do. I don’t have a huge sum of money invested in prosper but I like the balance it provides me for my portfolio.

I started using prosper about 2 years ago. I put in $2000. My interest rate varies from 11 to 15% increase. I have had one defaulted of $60.Anytime I have $25 or more pairs back to me, I reinvest it in prosper. I like it, the money you put in SHOULD NOT be your emergency fund or money you “care about”. The loans can be anywhere from 2 years to 5 years so I would t expect getting all of your money back soon. Currently it says I have $2500ish in loans (because I reinvest) and I withdrew almost $400 when I had it in there and needed it.This is a high risk, I really try to look in the class of loan (AA-E) and the information posted about the person I’m loaning to.Hope that helps, but again, I like it so far and I hope to just continue to reinvest into more loans and see where that takes me. Good luck!

For this type of investing, the risk is totally on you. Almost anybody can apply for loan from Prosper. I’ve had borrowers form group A come up late sometimes but if you get greedy wanting a higher return from borrowers in group C, D, E, and HR (High Risk) just know it’s possible they come up late majority of the time and or go into default which ends up as a lost for you. I place higher dollar amounts in AA and A loans. Keep it as minimum as you can for other groups.

I have been investing small amount on the Prosper platform since 2019. I was initially excited about it and the potential to be able to make small investments. As I was using the platform, it consistently told me that I was earning around 11% interest on my investments. But as I decided to change some of my strategies, I started withdrawing my money from Prosper to invest in other areas. This is where the wheels fall off. As I started withdrawing money, all of the so-called profit I had made was eaten up in losses to defaulted loans. So after 5 years investing on the platform, I am now currently on track to have a total overall loss instead of any profit. I would highly recommend investing your money somewhere else.