How to Invest on Envestio | Manual Investing vs. Envestio Autoinvest
Do you want to invest on Envestio and earn up to 22% interest on your investment?
In my last guide, I explained how to sign up on the P2P lending site and in this post, I will show you how to invest on Envestio.
I have been investing on Envestio since the beginning of 2018 and I haven’t had any loss since then. Read my Envestio review to find out what I think about the P2P lending platform.
Transfer funds to Envestio
After you have completed the sign up on Envestio and verified your identity, you can transfer funds to the P2P lending platform.
Envestio offers only one option to transfer funds to your account – bank transfer.
In order to view the bank details, you need to click on your dashboard under My accounts on Add funds.
You will receive a pop-up message informing you about the bank’s credentials. Make sure to not forget to type in your payment details: Loan to Invest Account No. (your number), so Envestio can allocate your payment to your account.
It’s advised to have a bank account in Euro as all of the investments on Envestio are made in Euro. If you don’t have one bank account you can open a free account with one of the digital banks. I always use my N26 account to transfer funds to Envestio.
Bank transfers within the EU (SEPA) are for free. The transfer usually takes one to two working days, depending on your bank. As soon as your funds are available on your Envestio account, you will get notified via email.
Start investing on Envestio
As soon as your money arrives on Envestio you will see it on your account balance. Now you can choose to invest in projects manually or with the help of the Envestio Autoinvest, which invests money automatically based on your preferences.
Let’s have a look on how both options work and on what you should be looking at.
There are two ways how to invest manually on Envestio.
1. Use the Project tab
In the top menu, you will need to click on Projects to view the current list of active business projects.
You should be mainly interested in projects that aren’t funded yet. These are the ones that you can invest into. The project overview gives you some basic information about the industry, the funding target, loan period as well as the interest rate.
In the title of the project, you will also find out whether this project is a “new” investment or simply another stage (tier) of a bigger business project.
Envestio as well as EstateGuru list projects in multiple tiers or stages, meaning that one borrower is financing his development with multiple loans as he does not need the full loan amount at once. This gives the borrower an opportunity to save money on the interest as he does not get the full amount straight away but rather in tiers.
Note that investing in multiple tiers from one borrower might hurt your diversification strategy. This is particularly important when investing higher amounts. In case the borrower has difficulties to pay back one of the loans (tier 1 for example) it’s likely that he will have difficulties with the other tiers as well.
When you click on Learn more you will get open the full project description. The goal of the project description is to educate you about where the money is going to be used for and what you will get in return.
When you scroll down you will get some additional information about the loan period, repayment of interest payments as well as about the borrower’s collateral.
You can invest directly on this page into the project or you use the second option through the investment tab.
2. Invest through Investments
If you aren’t interested in more details about individual projects, you can invest directly into active investments. Just click on the menu on Investments and invest in available projects.
This page allows you to filter the results based on the interest rate, loan period, type and organization. Most of the time you won’t need to use this as the availability of projects on Envestio isn’t very high. To learn more about this, read my Envestio review.
Use the Envestio Autoinvest
In summer 2019 Envestio finally introduced their Autoinvest. This function allows investors to invest into projects automatically based on a few preferences. The added value here is that you don’t need to waste time with manual investments.
You can reach the Envestio Autoinvest through the menu Investments –> Autoinvest.
You can click on add Autoinvest rule to define your preferences.
You have the option to choose certain criteria such as:
- loan types
- the size of your Autoinvest portfolio
- investment amount
- interest rate
- the loan period
You can also define whether the Autoinvest should invest in multiple loans from the same originators. This means that you will be investing in multiple tiers as mentioned earlier. I personally don’t invest in multiple loans from one borrower on Envestio.
After you configured your Autoinvest rules, make sure to save it to confirm your settings. Note that you need to have sufficient funds on your account to active the Autoinvest.
You can always view your portfolio under Investments → My investments.
How to invest as a beginner
Envestio is a good platform for any P2P investor as it’s very easy to navigate. It’s by far not as complex as Mintos, but there aren’t so many diversification options either.
As a beginner, you can certainly use Envestio to diversify your P2P portfolio and increase the interest on your investments. There is no minimum investment threshold, so you can start investing in businesses from €1.
Currently, I aim to invest at least €100 into one project as there aren’t so many projects on Envestio that would allow me to divide my investments in multiple projects. Read more details about my experiences with Envestio in my in-depth review.
Investing on Envestio is easy and it’s a good way to increase the interest on your investments.
When I compare the potential earnings with Envestio to other P2P lending sites, that I am invested in, it’s by far the highest, meaning I earn the most interest in relation to the invested amount on Envestio.