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

With the viainvest Auto Invest function, you can select the type of P2P loans you want to invest in fully automatically. You can also specify whether returned funds from interest and repayments should be reinvested, which is particularly practical. On viainvest, you have the possibility to create several Auto Invest portfolios.

It is important that you set up your Auto Invest portfolio correctly. Wrong settings will cause your Auto Invest portfolio to stop investing or you will buy loans you don't want to.

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

Create an Auto Invest portfolio

You can easily create an Auto Invest portfolio. First click on "Invest" in the top menu, then on the link "AUTO INVEST" and then on the button "CREATE NEW".

viainvest set up Auto Invest Portfolio

viainvest will then show you an overview of settings for your Auto Invest portfolio.

The default settings are portfolio size, total interest rate and remaining loan term. If you want to simply accept the default settings, you still need to adjust the following settings before you can create your Auto Invest portfolio: Portfolio name, loan status, loan type and loan originator.

The Maximum investment per loan setting is not mandatory, but it is very important. You should set a maximum investment amount per loan, otherwise your entire investment amount may be invested in 1-3 loans.

Set up viainvest Auto Invest correctly 

Note: The content of this article is for general information purposes only and does not constitute investment advice or recommendations. The information is based on our personal experience and financial knowledge. Every successful investor should inform himself extensively and make his own decisions tailored to his personal goals.

viainvest does not offer any predefined Auto Invest portfolios. Only a few settings have been preset by viainvest for your orientation. You have to set up your Auto Invest portfolio yourself.

You can make the following settings:

  • Portfolio name: Name for your Auto Invest portfolio

  • Portfolio size: Investment amount

  • Maximum investment perin one loan: How much you want to invest per loan

  • Total interest rate: Minimum and maximum interest rate

  • Remaining loan term: Term of the loan in days

  • Loan status: Current or delayed (payment difficulties)

  • Loan type: Short-term loans, consumer credit, line of credit, business loans

  • Loan originators: viaconto.se (Sweden), viaconto.ro (Romania), viasms.cz (Czech Republic), viasms.lv (Latvia), viasms.pl (Poland) and VIA SMS GROUP (Vietnam), viasmsgroup.com (RE Spain)

  • Minimum funds in the account: The minimum amount that should not be invested

  • Buyback guarantee: Yes or No (only Business Loans are brokered without guarantee).

  • Reinvest: Whether the portfolio should reinvest

Auto Invest portfolio settings for conservative investors

If you want to build a conservative Auto Invest portfolio, you should invest in loans with above-average ratings and short maturities.

Although most loans on viainvest are offered with buyback guarantees, you should not simply rely on them.

Furthermore, you should rather not invest in business loans on viainvest. Business loans are much riskier than consumer loans.

Maximum investment per loan

The minimum investment amount of €10 seems reasonable to us. Possibly, you can also increase it up to €20 to invest your investment amount faster. Note, however, that a wide spread of P2P loans is important and you should not choose the maximum amount per loan too high.

Interest rate

Typically, loans with lower ratings have higher interest rates, while loans with low interest rates have higher ratings. Therefore, for a conservative strategy, we suggest to focus on loans with low interest rates and higher ratings.

viainvest mainly offers very short-term loans with maturities of up to 30 days. The short maturities mean that the potential credit default risk is almost the same whether you invest in loans with 14 or 30 days maturity. Therefore, we consider an interest margin of 8% to 12% p.a. to be acceptable. If you want to invest particularly conservatively, you can adjust the spread to 8% to 10% p.a.

Remaining loan term

The terms of the P2P loans on viainvest are very short, the average term is 30 days. In some cases, we have observed that there is little or no difference in loan rates for different maturities. Therefore, in our opinion, it could make sense to invest only in terms of up to 14 or 21 days. Otherwise, you can keep the default setting of 30 days.

Loan status

You should only invest in loans with the status Current (no delays).

Loan type

You should exclude business loans.

Loan originators

The loan originators setting could also be called "Countries" because the individual companies are the loan originators that arrange loans in the individual countries. As a conservative investor, you should exclude countries that are not members of the European Union. This means that you do not invest in the loans of the loan originator VIA SMS Group (Vietnam).

Buyback guarantee

You select "Yes" as a setting to invest only in loans with buyback guarantee.

Summary for conservative investors

  • Maximum investment amount per loan €10

  • Interest rate from 8% to 12% per year. Somewhat more conservative would be 8% to 10% per year.

  • Remaining loan term to a maximum of 30 days or 21 days

  • Only loans with the status "Current"

  • Business loans are excluded

  • All loan originators except VIA SMS Group (Vietnam)

  • Only loans with buyback guarantee

Auto Invest portfolio settings for risk-conscious investors - maximizing returns 

viainvest (similar to Twino) focuses on short-dated loans. Investors typically expect higher interest rates for longer maturities, as they have to give up their money for longer. This opportunity to increase returns does not exist on viainvest in this way (or only to a very limited extent).

With which Auto Invest portfolio settings you can probably increase your yield anyway, we will show you.

Maximum investment per loan

Since we follow a risky investment strategy, diversification over as many P2P loans as possible is crucial. A maximum of €10 per loan seems reasonable to us.

Interest rate

You should set the minimum interest rate to 10% p.a. (or higher). You should increase the maximum interest rate to 15% p.a.

Remaining loan term

The vast majority of loans on viainvest are for 30 days only. In some cases, it doesn't matter if the loans run longer or shorter, the interest remains the same. You could test if your Auto Invest portfolio finds enough loans if you only invest in terms up to 14 days, for example. If you can then reinvest the maturing loans just as quickly, you could significantly increase the compound interest.

But, you would also limit the portfolio very much and, possibly, there are hardly or only a few loans available. You should therefore leave the term at 30 days.

Loan status

Loans with the status Current and Delayed. Loans with delayed payments will be repurchased by the loan originator after 30 days. Investors will then receive their invested capital and lost interest, which can also increase your return on investment.

Loan type

The strength of viainvest are short-term loans. The platform plans to arrange business loans in a timely manner. In our opinion, you should focus on the strength of the platform and therefore exclude business loans.

Loan originators

Now we come to potentially the most important setting to maximize your return on viainvest. The interest rates that borrowers have to pay vary greatly between countries.

Investors tend to expect much higher interest rates for loans made in developing countries (or countries with a weak overall economy). You can see this with bonds, for example. It is a risk premium to compensate investors for the additional risks that can occur when investing in developing countries.

Because of the high demand on viainvest, it is sometimes very difficult to compare loans with each other because there are simply no loans available, so let's take a look at the Mintos platform as an example.

Mintos: short-term loans from Latvia with the best ratings

If we filter on Mintos for short-term loans with terms up to 30 days, we see that we can expect interest rates around 9% - 9.5% p.a. for loans from Latvia with the best ratings (risk scores on Mintos).

Mintos: short-term loans from Kazakhstan with highest rates

If we look at the loans from the developing country Kazakhstan with the same filter settings, we quickly see that the interest rates are twice as high. The interest rates are around 18% per year.

For your investments on viainvest this means that you can expect the highest interest rates for loans from developing countries. At viainvest these are mainly the loans from the loan originator VIA SMS GROUP (Vietnam). This loan originator is a joint venture of Twino and viainvest.

As of today (January 2021), no loans from Vietnam are offered on either viainvest or Twino.

However, it is not recommended that you invest only in loans from Vietnam to increase your return. This would contradict the principle of diversification. However, you could try to invest a larger portion of your investment amount in Vietnamese loans.

Buyback guarantee

Select "Yes" as the setting. The setting is ultimately only relevant for business loans, which we have excluded anyway.

Summary for risk-conscious investors

  • Maximum investment amount per loan €10

  • Minimum interest rate 10% (or higher) to 15%

  • Leave remaining loan term to a maximum of 30 days, possibly test shorter terms

  • Loans with the status "Current" and "Delayed"

  • No investment in business loans

  • All loan originators with a focus on loans from VIA SMS Group (Vietnam)

  • Only loans with buyback guarantee

We believe viainvest is an excellent platform to achieve stable and predictable returns.

While it is possible to increase expected returns on viainvest, we would advise investors to rather focus on other platforms such as Mintos if returns of more than 12% p.a. are to be achieved.

Checking your Auto Invest portfolio

Once your Auto Invest portfolio is created, it starts investing. It will keep investing in new P2P loans until the portfolio size is reached.

On viainvest the brokered loans are in high demand. Therefore, it may take some time until you are fully invested. How fast it goes depends on how many loans are currently offered.

It is not recommended to check your Auto Invest portfolio several times a day. You will only drive yourself crazy, which in turn will lead to investment mistakes.

If you check after 2-3 days whether your money has been invested, that is enough.

Auto Invest portfolio does not invest

If, contrary to expectations, nothing happens in your Auto Invest portfolio, it is often because you have chosen the settings too restrictive. In this case, no loans have been offered that correspond to your settings.

In this case, you should make the settings a little broader and wait another 2-3 days to see if any loans have been invested.

What do I do if no loans are available?

This can be the case more often on viainvest. Many investors then make the mistake and unsubscribe immediately. You can find their (sometimes very negative) criticism on social media.

In fact, this is a quality feature of the platform and you should react calmly and prudently. Investing in P2P loans does not depend on a few days.

We would generally advise to stay calm in this situation. A few days do not matter with P2P lending.

How often should I check my Auto Invest portfolio?

On viainvest the average term of the loans is 30 days. Therefore, it seems reasonable to check your Auto Invest portfolio 1 to 2 times a month. If the average duration of the loans in your Auto Invest portfolio deviates strongly from this, for example only 14 days, you should check your portfolio about every two weeks.