Investors are ditching the stock market in favour of bundled loans sold by fledgling platforms that are yet to be tested by a financial crisis.

After a year of turbulence in the markets, investors are switching their stocks and shares Isas to innovative finance Isas in large numbers.

This new type of Isa was launched in 2016 to allow people to access peer-to-peer (P2P) loans, which involve individuals and small firms lending to each other, cutting out banks.

Returns range from about 4pc for lower-risk loans, to 10pc or higher for more speculative loans, often involving property developments.

Data compiled for Telegraph Money by RateSetter, a P2P firm, showed that as , there was a spike in the number of transfers into innovative finance Isas. Lees verder →