Create an Auto Invest Portfolio on PeerBerry and set it up correctly
Last updated on 16 May 2021 by Reza
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Like the other major P2P platforms, PeerBerry* also offers its investors an automatic investment function. Since you should spread (diversify) your investments in P2P loans as broadly as possible, you can only achieve this permanently if you automatically invest in P2P loans.
PeerBerry is one of the platforms where investors can create multiple Auto Invest portfolios. This can make sense for you if you want to invest very specifically in certain loans.
In this post, we\'ll show you how to easily create an Auto Invest Portfolio and set it up to fit your investment goals.
Create an Auto Invest Portfolio
You can find the Auto Invest function at PeerBerry* under the menu item "Invest". Then click on the "Auto Invest" link at the top of the screen. Then click on the button "Create new Auto Invest portfolio".
In the first step PeerBerry will show you all loan providers on the platform. By default, all loan providers on the platform are displayed.
In the next section you will find the settings for the Auto Invest portfolio. Unlike other platforms, the portfolio is displayed without any default settings.
On the right side PeerBerry shows how many loans are currently available in the settings.
Set PeerBerry Auto Invest Portfolio correctly
Note: The content of this article is for general information purposes only and does not constitute investment advice or a recommendation. The information 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 not offered preset. There are also no preset investment strategies suggested. This means that you have to make your own decisions.
You can make the following settings:
- Loan provider: Loan provider in whose loans you want to invest.
- Interest rate: Minimum and maximum interest rate
- Remaining term: Minimum and maximum term of the loans in days
- Portfolio name: Name of the Auto Invest portfolio
- Portfolio size: Amount invested
- Maximum investment in one loan: Maximum investment per loan
- Residual nominal amount: Minimum and maximum sold portion of one loan
- Minimum balance: What amount should remain in the account
- Loan status: All, Current or Delayed
- Reinvest: Whether funds that have been returned should be reinvested
Set Auto Invest Portfolio correctly for conservative investors
As a conservative investor, a stable return is important to you and you want to get your money quickly. We will show you which settings you need to make in your Auto Invest portfolio to achieve these investment goals.
Even though the loans on PeerBerry* all come with repurchase guarantees, you should not rely on them.
You should only invest in loans from loan originators that arrange short term loans in the European Union. Loan originators from developing countries may pose additional risks that are difficult to calculate, which is why we exclude them.
Loan originators that arrange loans in the European Union are as of the current status (January 2021):
- Smart Pozyczka
- Pożyczka Plus
PeerBerry does not publish ratings (risk classes) on the loans it offers. Since interest rates and ratings are mutually dependent, better ratings lead to lower interest rates and vice versa. To tend to invest in loans with better ratings, you should invest in loans with 9% p.a. to 9.5% p.a.. Particularly conservative investors only invest in loans with an interest rate of up to 9% per annum.
Depending on how available your money should be, you can adjust the remaining term. You should set the maximum term to 45 days. If your money is more available, you can further reduce it to 30 or 15 days.
Maximum investment in a loan
You should invest a maximum of 10 € (maybe up to 20 €) per loan. We accept an investment amount between 1.000 € - 10.000 €.
In this setting you should select Current to invest only in loans where no delays have occurred yet.
Summary for conservative investors
- Only loan providers from Europe
- Interest rates from 9% p.a. to 9.5% p.a. (very conservative investors take only 9%)
- Maximum maturity 45, 30 or 15 days
- Maximum investment per loan 10 €
- Only loans with Current status
Auto Invest portfolio properly set up for risk-loving investors
Looking for maximum returns? We will show you which settings you can use to achieve maximum returns with your Auto Invest portfolio.
The strength of PeerBerry* is mainly short term consumer loans . Therefore, we would recommend you to invest only in consumer loans with short maturities on PeerBerry. If you want to invest in real estate and business loans, you should check out P2P platforms Estateguru and Crowdinvest.
For loan originators, you select all loan originators except for the three loan originators (January 2021):
- Euro Groshi
The excluded loan originators arrange corporate loans, real estate loans and leasing transactions.
When it comes to interest rate, you should invest in loans that are at the higher end. However, you should not invest only in the loans with the highest interest rates, because these tend to be the loans with the worst ratings. That would contradict the principle of risk diversification. We think 10% p.a. to 11.5% p.a. is reasonable.
Regarding the remaining term, we noticed that some loans are offered with terms of up to 1 year.
In order to benefit from possible compound interest and not tie up the money for too long, we would set it to a maximum of 90 days.
Maximum investment in a loan
From experience, 10 € per loan has proven to be the maximum. With higher values you are invested faster, but this has a negative impact on the overall diversification of your portfolio.
You can leave this setting at All.
Summary for risk-averse investors
- Only loan providers that issue short term loans
- Interest rates from 10% p.a. to 11.5% p.a.
- Maximum term 90 days
- Maximum investment per loan 10 €
- Loans with status All
Check Auto Invest Portfolio
After you have created your Auto Invest Portfolio, you should give the automatic investment function time to invest for you. Typically, it takes 2 to 3 days for the investment amount to be invested.
When investing in P2P loans you should be patient. It is not productive if you log in every hour and look at your investments.
Auto Invest Portfolio does not invest
If your Auto Invest portfolio does not invest at all or stops investing, it is usually because no loans were brokered that matched the portfolio\'s settings.
You can easily check if there are currently no loans on the platform that match the settings of your portfolio. Create a new Auto Invest portfolio with exactly the same settings. If you see on the right side that "Loans matching your criteria 0" , you should adjust your Auto Invest portfolio.
How often should I check my Auto Invest portfolio?
It depends on the average maturity of your loans. If the average maturity is 14 days, you should check your portfolio every two weeks. The same would be true for an average maturity of 1 month.