Create an Auto Invest Portfolio on Swaper and set it up correctly
Last updated on 16 May 2021 by Reza
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Swaper* offers its investors a very user-friendly automatic investment function. An Auto Invest Portfolio has the advantage for you that you only have to define a few settings at the beginning and after that the portfolio invests for you automatically. You only need to check it from time to time.
On Swaper* you can create multiple Auto Portfolios, which gives you the opportunity to invest in P2P loans in a very targeted way.
In this article we will show you how to create an Auto Invest Portfolio and how to set it up correctly.
Create an Auto Invest Portfolio
To create an Auto Invest Portfolio, click on the "Create Portfolio" button in the overview. You can ignore the information on the left side of the screen (portfolio size and portfolio duration).
After that a new window opens and you click on the link "More options".
Now Swaper shows you the default Auto Invest portfolio. If you had not clicked on the "More options" link in the previous step, Swaper would have created the Auto Invest portfolio for you.
Apparently, Swaper has set the settings so that the investment amount is invested as quickly as possible. What is noticeable is the high maximum investment per loan and the long loan term of up to 24 months.
Set 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 own 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:
- Portfolio name: name of your Auto Invest portfolio
- Portfolio size: Investment amount
- Portfolio duration: How long the portfolio should remain active
- Interest rate per year: Minimum and maximum interest rate of the loans
- Max Investment in Loans: Maximum investment amount per loan
- The remaining loan amount: How much of the loan is left to invest
- Loan term in months: Minimum and maximum term of the loans
- No investments if balance <: From which account balance is no longer invested
- Countries: Poland, Denmark, Spain
- Reinvest: Whether to reinvest
- Extended: credits that have been extended (e.g. due to deferrals)
- Delayed: Loans that are in default
Set Auto Invest portfolio for conservative investors
The Auto Invest feature of Swaper* is very clear 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 repurchase 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 brokered with an interest rate of 14% p.a. (February 2021). More return is possible only if you get the loyalty bonus on Swaper. You do not have to specify a minimum and maximum interest rate.
Max investment in loans
Despite the repurchase guarantee, a maximum investment of 500 € 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. The one who acts too quickly and rashly loses.
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 makes more sense not to invest in too long terms from the beginning, in order not to be dependent on whether another investor buys the loans from you.
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.
Credits that have been extended will be excluded.
Loans that have been delayed are excluded.
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 loans
- No delayed loans
Create an offensive Auto Invest portfolio
In our other posts about Auto Invest Portfolios on other platforms, we have always made a suggestion for conservative and risk-averse 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 exactly the same attitudes to investors seeking even higher returns that we would 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 on Swaper to receive a loyalty bonus of +2% p.a. on your investments.
Control Auto Invest portfolio
It is important that you 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* shows you that there are no loans available. Investors then quickly panic and fear that they are missing out on interest.
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 brokered 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. If you want to be a little closer, you should install the Swaper app on your smartphone.