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

Disclosure: This site may contain affiliate links, meaning, at no additional cost to you, we will earn a commission if you decide to make a purchase through our links. Please read our data protection statement for more information.

Reza Machdi-Ghazvini,CAIA
Last updated on 03 September 2021

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

Mintos offers thousands of loans to its investors. Selecting loans individually would not be pragmatic and very time-consuming. For this reason, Mintos offers its investors the possibility to create Auto Invest portfolios, with which they can invest in P2P loans in a fully automated way.

Several Auto Invest portfolios allow you to implement your investment strategy on Mintos in a very targeted way.

In this article, we explain how to create an Auto Invest Portfolio on Mintos and how to set it up correctly.

Create an Auto Invest portfolio

If you want to create an Auto Invest Portfolio, click on "Invest" in the top menu and then on the button "+ Add strategy".

create Mintos Auto Invest Portfolio

Then you can choose from four predefined Auto Invest portfolios. We assume that you want to apply your personal settings and that's why you select "Custom". After that, you have to select "Automated".

Mintos Auto Invest loan originators

After that Mintos will show you the overview for a new Auto Invest portfolio. First, you will see all the loan originators (lending companies).

Mintos Auto Invest more settings

Below the loan originators, you will find the other settings, such as interest rate and remaining term.

Mintos Auto Invest available loans

It is very advantageous that Mintos shows you how many loans are currently offered that match your settings, displayed on the right side of the screen. This way, you can quickly see if you should correct your settings.

Set up Mintos Auto Invest portfolio correctly

Note: The content of this post is for general information purposes only and does not constitute investment advice or recommendations. The information provided is based on our personal experience and financial knowledge. Every successful investor should do extensive research and make their own decisions based on their personal goals.

The default settings of the Auto Invest portfolio would invest in all available loans without any restrictions.

Therefore, you should set the Auto Invest portfolio to match your personal investment strategy.

You can make the following settings:

  • Currency: currency of the loans

  • Market: primary market or secondary market 

  • Lending company: available loan originators

  • Interest rate: minimum and maximum interest rate in percent

  • Remaining loan term: term of the loans in months

  • Strategy name: name of this Auto Invest portfolio

  • Portfolio size: the max. size (investment amount) of this strategy overall

  • Investment in one loan: how much maximum will be invested per loan

  • Diversification across lending companies: spreading the capital across multiple loan originators (lending companies)

  • Diversification settings: how much should be invested in % per loan originator at maximum

Auto Invest portfolio settings for conservative investors

As a conservative investor, stable returns and quick availability of the invested capital are important to you. We will show you how to set up your Auto Invest portfolio to achieve your investment goals.

Although most (or almost all) loans on Mintos are brokered with buyback obligations (formerly buyback guarantees), it is advisable not to blindly invest in all loans and choose your investments wisely.

Loan originator (lending company)

The most important setting in your Auto Invest portfolio. On Mintos, the individual ratings of the loans (evaluation via creditworthiness) only play a minor role. Much more important are the Mintos Risk Scores of the loan originators. They give investors a clear indication of the creditworthiness of the individual loan originators.

For conservative investors, it is therefore advisable to invest only in loan originators with above average Mintos Risk Scores, which in our opinion are between 7 and 10.

When it comes to loan types, you should focus mainly on short-term loans and consumer loans. For specific loan types, we believe that it makes more sense to invest on dedicated platforms, such as EstateGuru for real estate loans.

Also, conservative investors should exclude countries that do not lend within the European Union. This way, they can avoid exposing themselves to special risks that can occur with developing countries (Great Britain excluded, of course).

In conclusion, it makes sense to invest only in loans from loan originators that broker their loans with buyback obligations and leave the recovery of delayed loans to the loan originators.

Interest rate

In principle, you could leave the minimum and maximum interest rate as they are. However, it may make sense to adjust the interest rates to further reduce the risk.

Interest rates are directly related to the creditworthiness of a borrower (or rating of a loan). The higher the interest rates, the lower the rating of the loan.

Therefore, if you want to further reduce the risk taken, it would be good to reduce the maximum interest rate to 10% - 12% per year.

Remaining loan term

The more available your money is, the better. Therefore, you should choose a maximum of 1 to 3 months. As long as there are enough loans left, 1 month seems reasonable to us.

Maximum investment per loan

A maximum investment of €10 - €20 per loan has proven itself due to diversification reasons. You should adjust this setting accordingly.

Diversification across lending companies (loan originators)

You should select Yes as the setting.

Diversification settings

In this setting, you can define how to distribute the money across the selected loan originators. It is important that you distribute your money at least over 8 originators because they can go bankrupt.

Mintos Auto Invest Diversification settings

You should select that you want to invest the same amount per loan originator by selecting "set equal".

Summary for conservative investors

  • Loan originators with Mintos Risk Score 7 - 10, only short-term loans and consumer loans, only countries from the European Union, with buyback obligation

  • Maximum interest rate 10% - 12%

  • Maximum remaining term 1 - 3 months (more likely 1 month)

  • Maximum investment per loan €10 - €20

  • Diversify across multiple loan originators

  • Select "set equal" in the diversification settings

Auto Invest portfolio settings for risk-conscious investors

Risk-conscious investors often look for high double-digit returns with P2P loans. We\ll show you how to set up your Auto Invest portfolio to achieve sustainable high returns on Mintos.

Lending companies (loan originators)

The most important setting in your Auto Invest portfolio. Especially important on Mintos are the Mintos Risk Scores of the loan originators, which represent how creditworthy a loan originator is.

Many investors think that the more risks they take, the more returns they could expect. With this misconception, they then invest in the loan originators with the worst Mintos Risk Scores (or ratings).

Experience has consistently shown that the highest sustainable returns can be achieved by investing in risk classes that are equal to or slightly below average. On Mintos, this would correspond to the Mintos Risk Scores 4 - 6.

For loan types, we only consider short-term loans and consumer loans, as investors should focus on the platform's strenghts.

For countries, we restrict only a little, and exclude the most exotic countries. These are Albania, Botswana, Colombia, Georgia, Indonesia, Kazakhstan, Kenya, Kosovo, Mexico, Moldova, Namibia, Philippines, South Africa, Vietnam and Zambia. These developing countries may experience political and economic developments that could have significant consequences for investors, so we prefer to exclude them.

As with the settings for a conservative investor, investments are only made in loans with buyback obligations.

Interest rate

As interest rates, you can set a minimum of 13% p.a. and a maximum of 15% p.a. We also consider 18% as a maximum still acceptable.

Remaining loan term

The remaining term basically depends on how available your invested capital should be. For longer terms, you can expect more interest, which is why we consider a minimum term of 0 months and a maximum term of 12 months (or longer) to be reasonable.

You can also set a minimum term, but we have found that already from a minimum term of 1 month the number of available credits decreases significantly.

Maximum investment per loan

Especially for a somewhat riskier strategy, you should invest a maximum of €10 per loan, so that the risk from individual loans is not too high.

Diversify across multiple lending companies (loan originators)

You should select Yes as setting.

Diversification settings

Similar to the settings for a conservative investor, you should select "set equal" as the setting to spread the investment amount evenly across the loan originators. There should be at least 8 loan originators through which you invest your money.

Summary for risk-conscious investors

  • Loan originators with Mintos Risk Score 4 - 6, only short-term loans and consumer loans, most exotic countries are excluded, with buyback obligation

  • Maximum interest rate 13% - 18% p.a.

  • Remaining loan term with minimum 0 months and maximum 12 months

  • Maximum investment per loan €10

  • Diversify across multiple lending companies (loan originators)

  • Select "set equal" in the diversification settings

Checking your Auto Invest portfolio

After you have created your Mintos Auto Invest portfolio, you should check it after 2-3 days. Sometimes, you are already fully invested on the same day.

It is not useful to check your portfolio every hour. Depending on your settings, it can sometimes take a while until your portfolio is fully invested.

Auto Invest portfolio does not invest (work)

Again and again, investors complain on Mintos that their Auto Invest portfolio does not invest. The suspicion quickly arises that the Auto Invest function is not working properly from a technical point of view.

Most of the time, the real reason can be found quickly. No loans were offered on the platform that correspond to the settings of the Auto Invest portfolio.

If your Auto Invest portfolio does not invest in new loans for a longer period of time, you should check the 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 your loans.

For example, if the average maturity is 1 month, it makes sense to check your Auto Invest portfolio once or twice a month.