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

Last updated on 16 May 2021 by Reza

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Mintos Auto Invest Portfolio anlegen und richtig einstellen

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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".

Mintos Auto Invest Portfolio anlegen

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

Mintos Auto Invest Darlehensanbahner

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

Mintos Auto Invest weitere Einstellungen vornehmen

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

Mintos Auto Invest verfügbare Kredite

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

Set Mintos Auto Invest Portfolio correctly

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

The Auto Invest Portfolio is set by default so that it 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 (secondary market)
  • Loan originator: Loan originator in whose loans you want to invest
  • Interest rate: Minimum and maximum interest rate
  • Remaining term: Term of the loans in months
  • Name of the strategy: Name of the Auto Invest portfolio
  • Maximum investment per loan: How much maximum will be invested per loan
  • Reinvest: Whether to reinvest
  • Include loans already invested in: Whether to additionally invest in loans that have already been invested in
  • Diversification across multiple lenders: spread of capital across multiple loan originators (lending companies)
  • Diversification settings: how much should be invested in % per loan originator at maximum

Auto Invest portfolio right 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.

Even though on Mintos most (or almost all) loans are brokered with repurchase obligations (formerly repurchase guarantees), it makes sense that you don\'t just blindly invest in all loans and choose your investments wisely.

Loan provider

The most important setting in your auto invest portfolio. On Mintos, the individual ratings of the loans (evaluation via creditworthiness) only play a downstream 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 providers.

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

When it comes to loan types, it makes sense to 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 repurchase 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 makes sense to reduce the maximum interest rate to 10% - 12% per annum.

Remaining 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 credits left, 1 month seems reasonable to us.

Maximum investment per credit

10 € - 20 € maximum investment per loan has proven itself, you should adjust this setting accordingly.

Include loans that have already been invested in

To make sure that you can spread your investment amount as much as possible, you should select No for this setting. This setting is especially relevant if you have created several Auto Invest portfolios.

Diversification over several lenders

You should select Yes as the setting.

Diversification settings

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

Mintos Auto Invest Diversifikationseinstellungen

You should select that you want to invest the same amount per loan provider by selecting "Match".

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 repurchase obligation
  • Maximum interest rate 10 % - 12
  • Maximum remaining term 1 - 3 months (more likely 1 month)
  • Maximum investment per loan 10 € - 20 €
  • Do not invest in already invested loans
  • Diversify across multiple loan providers
  • Select Equalize in the diversification settings

Set Auto Invest portfolio correctly for risk-averse investors

Risk-averse 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.

Loan provider

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 the misconception, they then invest in the loan originators with the worst Mintos Risk Scores (or ratings).

Past 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 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 starches.

For countries, we restrict only a little bit, and exclude the most exotic countries. These are Albania, Botswana, Colombia, Georgia, Indonesia, Kazakhstan, Kenya, Kosovo, Mexico, Moldova, Nambia, 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 repurchase 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 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 that comes from individual loans is not too high.

Include loans in which you have already invested

To diversify as broadly as possible, select No.

Diversify across multiple lenders

You should select Yes as the setting.

Diversification settings

Similar to the settings for a conservative investor, you should select Match as the setting to spread the investment amount evenly across the loan providers. There should be at least 8 loan providers 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 repurchase obligation
  • Maximum interest rate 13 % - 18 % p.a.
  • Remaining term minimum 0 months and maximum 12 months
  • Maximum investment per loan 10 €
  • Do not invest in already invested loans
  • Diversify across multiple loan providers
  • Select Matching in the diversification settings

Control Auto Invest Portfolio

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

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 very 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.