This graph demonstrates how greater diversification (through fractionalisation), can reduce the volatility of your Realised Annual Return (RAR). Moving from left to right, as the number of personal loans per account increases, the Lenders' RAR trends towards the platform average.
You will also see that once a Lender passes 200 personal loans loans in their portfolio, the volatility significantly decreases, i.e. a diverse portfolio of $5,000 (200 loans x $25 = $5000) offers a Lender much more stable returns than a portfolio with a lower investment.
Harmoney Lenders with a more diversified portfolio typically experience less volatility and more solid returns.