Create an Auto Invest portfolio on Swaper 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 Swaper and set it up correctly

Swaper offers its investors two automatic investment functions, an easy pre-defined one and a customized one. An Auto Invest portfolio has the advantage that you only have to define a few settings at the beginning. After that, the portfolio invests automatically. You only need to check it from time to time.

On Swaper, you can create multiple Auto Invest portfolios, which gives you the opportunity to invest in P2P loans in a very targeted way. You can choose the pre-defined easy investment strategy, but we recommend to set up a custom strategy that meets your specific investment profile and target.

In this article, we will show you how to create an Auto Invest portfolio and how to set it up correctly.

Create a custom Auto Invest portfolio

Create Swaper Auto Invest Portfolio

On the overview page, you can start an easy investing strategy by clicking on  the "Start" button. As we want to define a customized strategy tailored to your needs, choose "Custom Investing" at the bottom. 

Swaper Auto Invest Portfolio settings

After that, a new window opens, offering several setting to choose from.

The default settings are very broad. Apparently, Swaper has set the settings so that the investment amount is invested as quickly as possible. What is noticeable is the long loan term of up to 48 months.

Set up Swaper Auto Invest portfolio correctly

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

You could use the default settings of the Swaper Auto Invest portfolio if you want to invest your money as fast as possible.

For all P2P platforms, we would recommend investors not to simply follow the default settings and customize the Auto Invest portfolio to their personal investment goals.

You can set the following preferences:

  • Interest rate: Minimum and maximum interest rate per year of the loans

  • Max investment per loans: Maximum investment amount per loan

  • Loan term in months: Minimum and maximum term of the loans

  • Portfolio size: Investment amount

  • Portfolio name: name of your Auto Invest portfolio

  • Portfolio term: How long the portfolio should remain active

  • Loan statuses: current, extended or delayed

  • Loan originators: select available originators

  • Loan types: short term, mortgage or leasing

  • Countries: Poland, Denmark, Spain

  • BayBack: only loans with buyback guarantee

It also shows how many loans match your defined criteria under "Loans matching criteria in the past 30 days". This is very handy as you can avoid setting up portfolios that are not investible.

Auto Invest portfolio settings for conservative investors

The Auto Invest feature of Swaper is easy and does not overwhelm investors with too many settings. To set the Auto Invest Portfolio for the demands of conservative investors, only a few settings need to be adjusted.

All loans on Swaper are brokered with buyback guarantees. We always emphasize that investors should not simply rely on the guarantees.

Interest rate per year

At the current time, all loans on Swaper are offered with an interest rate of 14% p.a. (February 2021). More return is possible only if you get the loyalty bonus on Swaper. Thus, you do not have to specify a minimum and maximum interest rate.

Max investment in loans

Despite the buyback guarantee, a maximum investment of €100 per loan seems a bit high to us. To spread your capital as much as possible, we would suggest a maximum investment per loan of €10 to €20.

Remember, successful investing in P2P loans requires patience. Lending is about generating sustainable returns over the medium to long term. If you act too quickly, you can also lose quickly.

Loan term in months

Basically, you should prefer short terms in order to get your money back as quickly as possible. Even if there is a secondary market, it would be good not to invest in loans with really long terms, so you aren't dependent on other buyers.

However, most loans on Swaper have very short terms (30 days) anyway. We would recommend testing with terms of 1 to 3 months to see if there are enough loans left. You can then gradually extend the terms.

Loan statuses

Loans that have been extended or delayed should be excluded.

Loan originators

Both loan originators can be selected.

Loan types

Short-term loans are the main business of Swaper and we would therefore recommend to focus on these.

BuyBack

Currently, all loans are offered with buyback guarantees. In case this changes, this should be enabled.

Summary for conservative investors

  • No special settings are required for interest rates

  • Only a maximum of €10 to €20 is invested per loan

  • The maximum loan term should be between 1 and 3 months, slowly feel up

  • No extended or delayed loans

  • All loan originators

  • Focus on short-term loans

Auto Invest setting for an offensive portfolio

In our other posts about Auto Invest portfolios on other platforms, we have always made a suggestion for conservative and risk-conscious investors.

Since all loans on Swaper are offered at 14% p.a., it is basically pointless to invest in supposedly riskier P2P loans because there is no more return.

Accordingly, we would suggest the same attitudes to investors seeking even higher returns that we suggest to conservative investors (see previous section).

If you want to achieve even higher returns on Swaper, you need to invest at least €5,000 to receive a loyalty bonus of +2% p.a. on your investments.

Checking your Auto Invest portfolio

You should control your Auto Invest portfolio after you have created it. The supply of available loans fluctuates on Swaper. At times there are no loans available, so your Auto Invest portfolio will not immediately invest in P2P loans.

You should give your portfolio 2-3 days to invest for you. Sometimes your investment amount will be fully invested on the same day. Unfortunately, this cannot be predicted.

Auto Invest portfolio does not invest

Sometimes investors complain that their Auto Invest portfolio does not invest. This can usually be solved by adjusting the settings.

For example, if you have specified a maturity that is very short, your Auto Invest portfolio may not find loans that match your settings. You should then gradually adjust your settings.

No loans available on Swaper

Very often, Swaper states that there are no loans available. Investors then quickly panic and fear that they are missing out on interest.

Swaper no loans available

On the one hand, a few days does not matter when investing in P2P loans and on the other hand, you have no reason to worry as long as enough loans have been offered in the last 30 days. Sometimes a little patience is needed.

How often should I check my Auto Invest portfolio?

Most loans on Swaper have very short terms of 30 days. This will also be reflected in your Auto Invest portfolio. If you check your portfolio 1 to 2 times a month, that should be quite enough.

Swaper App Logo

If you want to be a little closer, you should install the Swaper app on your smartphone.