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

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

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

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.

On PeerBerry, investors can create multiple Auto Invest portfolios. This is useful for you if you want to invest very specifically in certain loans.

In this article, we'll show you how to 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 "Auto Invest" at the left top of the screen. Then click on the button "Create new Auto Invest strategy".

PeerBerry Auto Invest loan originators

In the first step, PeerBerry will show you all loan originators on the platform. By default, all loan originators on the platform are selected.

PeerBerry Auto Invest settings

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.

PeerBerry Auto Invest available loans

On the right side, PeerBerry shows how many loans are currently available based on these settings.

Set up PeerBerry Auto Invest 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 personal 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 with preset settings or suggested preset investment strategies. This means that you have to make your own decisions.

You can make the following settings:

  • Loan originators: Available loan originators 

  • Interest rate: Minimum and maximum interest rate

  • Remaining term in days: 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

  • Remaining principal amount: Minimum and maximum sold portion of one loan

  • Minimum funds in account: What amount should remain in the account

  • Loan status: All, Current or Delayed

  • Reinvest: Whether funds that have been returned should be reinvested

Auto Invest portfolio settings 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 support these investment goals.

Even though the loans on PeerBerry are offered with buyback guarantees, you should not rely on them.

Loan originators

PeerBerry Auto Invest conservative investors: loan originators

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.

Under loan type, select "short-term" only and then chose the loan originators that arrange loans in the European Union, which are currently (August 2021):

  • Smart Pozyczka

  • Pożyczka Plus

  • SOSCredit

Interest rate

PeerBerry Auto Invest conservative investor: interest rats

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 year.

Remaining term

PeerBerry Auto Invest conservative investor: term

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 should be available in even shorter time, 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 assume an investment amount between €1.000 - €10.000.

Loan status

In this setting, you should select "Current" to invest only in loans without any delays so far.

Summary for conservative investors

  • Only loan originators 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 settings for risk-conscious investors

Are you looking for maximum returns? We will show you which settings you can use to achieve maximum returns with your Auto Invest portfolio.

Loan originators

PeerBerry offered loans by type

The strength of PeerBerry is mainly short-term consumer loans. Therefore, we would recommend 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 such as EstateGuru and Crowdinvest.

In terms of loan originators, you can select all loan originators except for these three (January 2021):

  • Euro Groshi

  • Automoney

  • SIBgroup

The excluded loan originators arrange corporate loans, real estate loans and leasing transactions.

Interest rate

PeerBerry risk-conscious investor: interest rates

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.

Residual term

PeerBerry risk-conscious investor: term

Regarding the remaining term, we noticed that some loans are offered with terms of up to 1 year.

To benefit from possible compound interest and not to 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 your money will be invested faster, but this has a negative impact on the overall diversification of your portfolio.

Loan status

You can select "All" in this setting.

Summary for risk-conscious investors

  • Only loan originators 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"

Checking you Auto Invest portfolio

After you have created your Auto Invest Portfolio on PeerBerry, 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 does not invest

If your Auto Invest portfolio does not invest at all or stops investing, it is usually because no loans were offered that matched the portfolio's settings.

PeerBerry no loans that match the 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 the same settings. If you see on the right side "Loans matching your criteria 0", you should adjust the setting of 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.