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Create an Auto Invest Portfolio on iuvo and set it up correctly

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Written by Reza Machdi-Ghazvini,CAIA

Financial Expert

Create an Auto Invest Portfolio on iuvo and set it up correctly

On the platform iuvo you can invest in P2P loans fully automatically with an Auto Invest portfolio. You are not limited to one portfolio and can create multiple portfolios. For each portfolio, you can define exactly in which P2P loans you want to invest and also determine whether returned funds from interest and repayments should be reinvested.

The settings of your Auto Invest portfolio are important. If you set the wrong settings, you will invest in P2P loans that you do not want to invest in. In the worst case, your Auto Invest portfolio will not start investing at all.

In this article, we will show you exactly how to create an Auto Invest portfolio and how to make the right settings.

Create an Auto Invest portfolio

To create an Auto Invest Portfolio, click on "Auto Invest" in the menu on the left, then click on the button "Create new Auto Invest portfolio".

IUVO Auto Invest Portfolio settings

You will then see all available settings that you can select for your Auto Invest portfolio. iuvo does not make any default settings for you and does not offer any predefined automatic investment portfolios. You have to set up your Auto Invest portfolio yourself.

Set up iuvo Auto Invest correctly

Note: The content of this article is for general information purposes only and does not constitute investment advice or recommendations. The information is based on our personal experience and financial knowledge. Every successful investor should inform himself extensively and make his own decisions tailored to his personal goals.

You can apply a total of 18 settings for your Auto Invest portfolio. On the one hand, this offers you many design options, but on the other hand, it can make you feel a little insecure at first glance.

You can make the following settings:

  • Portfolio name: Chose a name for your portfolio

  • Investor account: Select the account for your investments (and in which currency)

  • Maximum investment in one loan: Maximum amount per loan

  • Score class: Ratings from A to HR

  • Remaining installments: How many installments are still outstanding

  • Paid installment: How many payments have already been made

  • Loan type: Loan types (consumer loans, real estate loans and others)

  • Loan status: On time or delayed

  • Buyback guarantee days: After how many days the buyback guarantee takes effect

  • Loan extension: Extended or not extended

  • Portfolio size: Amount invested

  • Minimum funds in the account: Minimum amount of money in the investment account

  • Interest rate: Minimum or maximum interest rate of the loans

  • Installment type: At what interval installments are paid

  • Amount available for investment: Amount of credit still available for investment

  • Country: Bulgaria, Spain, Georgia, Latvia, Poland, Romania and Russia

  • Originator: Loans from specific loan originators 

  • Maturity term: How long the loans will run

Auto Invest portfolio settings for conservative investors

You should set up your Auto Invest portfolio in a way that you can expect stable returns and few delays in loans. Also, your money should be available quickly without having to accept price markdowns.

The iuvo buyback guarantee pays investors back their invested capital, but the unpaid interest is not refunded. A high number of repurchased loans will result in a high amount of interest lost over time.

Even though all loans on iuvo (as of February 2021) are issued with buyback guarantees, you should keep the risks of P2P lending in mind and make sensible decisions.

We will show you which settings you can use to invest in loans that meet the requirements of a conservative investor.

Maximum investment in a loan

To invest in a P2P loan, you must invest at least €10 per loan on iuvo. For investment amounts between €5,000 - €10.000, a minimum amount of €10 - €20 has proven itself (the more money you invest, the higher the minimum amount can be). This is recommended to spread your investments in P2P loans as much as possible.

Risk assessment (rating)

iuvo divides the mediated loans altogether into 6 ratings: A, B, C, D, E and HR (where A stands for very good). iuvo indicates the default probabilities (in %) for the respective rating as follows:

  • Rating A: 0 - 2%

  • Rating B: 2 -10%

  • Rating C: 10 - 18%

  • Rating D: 18 - 25%

  • Rating E: 25 - 35%

  • Rating HR: over 35%

As a conservative investor, you should focus on loans with ratings A and B.

Loan type

In the beginning, iuvo focused on consumer loans from Bulgaria and Romania. Even today, loans from Bulgaria make up a large share of the loans brokered.

In our opinion, it is generally advisable to focus on the strengths of a platform. Since iuvo obviously has the longest track record of offering consumer loans, you should focus your investments on it. In the Auto Invest portfolio, these are the loan types Short-Term Loans and Personal Loans.

Loan status

You should only invest in loans with the status Current. These are loans where there have been no delays.

Buyback guarantee days

Since you are not compensated for lost interest on iuvo by the buyback guarantee, it would be useful to invest mainly in loans with buyback guarantees that take effect after 16 and 30 days. In practice, however, this is not possible because the vast majority (almost all) of the loans are offered with buyback guarantees that take effect only after 60 days.

Therefore, you should set 16, 30 and 60 days.

Loan extension

In this setting, you can choose to invest in loans that have adjusted their payment schedules due to potential difficulties. Some borrowers have deferred their payments on iuvo during the Corona crisis.

You should select without extension.

Interest rate

The credit default risk on iuvo can be well controlled by the risk assessment (ratings), therefore no settings are necessary for the minimum and maximum interest rates.


Only countries within the European Union should be considered. Especially in developing countries (or countries with a weaker economy) unforeseeable events can occur, which can hit you hard as an investor.

With this setting, you should only select the countries Bulgaria, Spain, Latvia and Poland.

Maturity term

IUVO overview of maturity of loans

On iuvo approx. 50% of the arranged loans do not run longer than 6 months.

In a short test, we looked at how many of the currently available loans run for only 1 month. Out of 22,365 loans, 325 (approx. 1.5%) remained with a term of 1 month, 1,656 (approx. 7% ) with 2 months and 4,175 (approx. 18.5%) with 3 months.

From a maturity of 3 months, there were enough loans left that had good ratings and were issued within the European Union.

We therefore consider a maturity of up to a maximum of 3 months to be reasonable. 4 months would also still be within reason.

Summary for conservative investors

  • Maximum investment in a loan €10 - €20 depending on the total investment amount

  • Score class (ratings) only loans with the ratings A and B

  • Loan type only consumer loans (short-term loans and personal loans)

  • Only loans with status "Current"

  • Buyback guarantees that take effect after 16, 30 and 60 days

  • No loans where there has been a renegotiation

  • Only loans within the European Union

  • Minimum 0 months and maximum 3 months remaining term

The right settings for risk-conscious investors

If you are looking for high double-digit returns, iuvo can offer you many loans. When investing with higher risks, it is important that you are not thrown off track by too many loan defaults.

Together, we will take a look at the settings you could select to create your Auto Invest portfolio.

Maximum investment in one loan

Especially with a risk-conscious strategy, it is important that you are not hit too hard by individual loan defaults. On iuvo you don't get compensated for repurchased credits. Many repurchased items will therefore certainly reduce your return. To limit the risk of individual credits, you should only invest a minimum of €10 per credit.

Score class (rating)

There is a misconception among many investors that more risk always leads to more return. But this is simply not true. This can be explained by the decreasing marginal utility. Accordingly, after a certain point, more does not automatically lead to more; in the extreme, more and more even leads to less and less.

Experiences on other platforms (and with bonds, for example) have confirmed that investors receive the highest risk-adjusted returns (ratio return / risk) for loans with medium ratings.

Loans per score classIUVO overview of score classes C and D

On iuvo you should therefore invest primarily in loans with ratings C and D.

Loan type

iuvo has the longest track record with consumer loans. The platform has grown up with this loan type. Thus, we would recommend investing mainly in consumer loans. You can also invest in other loan types.

Loan status

You should invest in loans with the status "current" and "in arrears". Then you will also invest in loans that are offered with discounts and you will be able to take advantage of further potential returns.

Buyback guarantee days

The vast majority of loans on the platform are offered with a buyback guarantee that takes effect after 60 days. Accordingly, you can select 16, 30 and 60 days.

Loan extension

You can invest in loans with and without extension.

Interest rate

Since you have selected loans with ratings C and D under the setting risk assessment (rating), you have indirectly also specified the interest rates. You can leave this setting as it is.


You can and should invest in all countries. Especially loans from developing countries sometimes offer interest rates that are twice as high as the same loans arranged in countries with strong economies.

It would not be advisable to invest only in the countries with the highest interest rates, you would be taking a very concentrated risk.

Maturity term

You can expect to receive higher interest rates on loans with longer maturities. To benefit from this, you should set a minimum maturity of 6 months.

Similar to risk scores (ratings), the highest risk-adjusted returns are ususally offered for loans with medium maturities. It may therefore make sense to set 12 or 16 months as the maximum term.

In case you need to get your invested capital quickly, you can sell the loans on the secondary market.

Summary for risk-conscious investors 

  • Maximum investment in one loan €10

  • Risk assessment (ratings) only loans with ratings C and D

  • Loan type mainly consumer loans (short-term loans and personal loans)

  • Loans with status "current" and "in arrears"

  • Buyback guarantees with 16, 30 and 60 days

  • Loans with and without renegotiation

  • Loans from developing countries (possibly overweight) and the European Union

  • Minimum residual maturity 6 months and maximum 12 to 16 months.

Checking your Auto Invest portfolio

Your Auto Invest portfolio will start investing immediately after you create it. It is possible that you will have invested your total investment amount within a very short time period. It depends on your settings and how many credits match your settings.

If it takes a little longer, you should not panic immediately. Maybe there are not so many loans available on the platform, or you have chosen your settings in such a way that it will take a little while until your investment amount is fully invested.

iuvo Auto Invest portfolio does not invest

Sometimes investors complain that their Auto Invest portfolio does not work because it does not invest. This problem can often be solved by adjusting the settings.

You can view all available loans on iuvo under the "Primary Market" section. There, you can enter almost the same settings as in your Auto Invest portfolio.

IUVO wrong settings for primary market

For example, if you want to create a conservative Auto Invest portfolio that only invests in loans from European countries with ratings A and B, and you set a minimum return of 15% p.a., no loans will be offered to you.

IUVO no loans available on the primary market that match settings

If your Auto Invest portfolio does not invest, you can quickly test with the primary market how to adjust your settings so that your Auto Invest portfolio can start investing for you.

If you see too few loans or no loans at all, you need to adjust your settings.

How often should I check my Auto Invest portfolio?

The frequency with which you should check your Auto Invest portfolio depends on the average maturity of the loans in your portfolio.

If the average maturity is 2 weeks, you should check your portfolio every 2 weeks. If it is one month, you should check your portfolio once per month.

If you want to have as little effort as possible with your Auto Invest portfolio, don't forget to activate the setting that returned funds should be reinvested automatically.


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Originally published 16 May 2021, last updated on 03 September 2021