mintos-auto-investIf you are just starting out investing on Mintos you might be wondering how to set up the Mintos Auto Invest function so you don’t need to waste time and invest manually.

 

I’ve been investing on Mintos for almost two years with annual returns of more than 10% and no default loans. Read my Mintos Review here. In this post, I will help you set up your Auto Invest that will help you generate similar results.

In this Mintos Auto Invest review, you will learn about the different diversification options. I will also explain step by step the process of setting up your Mintos Auto Invest that will help save your time and lower the risk of default.

How to Invest on Mintos

Mintos offers you three options when it comes to investing and building up your portfolio.

Manual Investment

The first option is to invest manually and choose the loans you want to fund by yourself. This is a rather time-consuming task and I personally don’t know any investors that spend their time with manual investments on Mintos.

Mintos allows you to invest in new loans on the primary market as well as into loans that being sold by fellow investors on the secondary market. The Dashboard gives you a vast of filter options that will help you narrow down a list of loans that you are interested in.


Mintos Invest & Access

Mintos turned off the Automated Investment Strategies feature and replaced it with the new Invest & Access feature.

The new Invest & Access function allows you to set up a portfolio size and diversify your investment for you across all loans with buyback guarantee.

What you should know about the Invest & Access feature:

  • This auto-invest function invests money only in loans with buyback guarantee
  • You can cash-out your portfolio anytime and get access to all of the money from loans that are not in the grace period or late
  • You can access your capital from overdue loans as soon as the loan recovers or the buyback guarantee kicks in (latest in 60 days)
  • You can sell individual loans on the secondary market
  • Your money won’t be diversified across all loan originators equally

This feature is very useful for anyone who does not want to take the time to set-up their custom auto-invest strategy.

The Invest & Access function allows investors to cash out their current investments in loans immediately without selling them on the secondary market. There is also no fee for early cash-out.

I am currently testing this feature myself and will keep you updated if I discover anything I don’t like about it. Just keep in mind reading the FAQs hidden under the Learn more link.

 

Mintos Auto Invest – Custom Strategy

Most of the Mintos investors, me included, set up their Auto Invest individually using the Custom Strategies.

Mintos allows you to fully customize your investment strategy. It’s the best option for anyone who’s prioritizing diversification as well as time efficiency. You set it up once and don’t have to worry about anything for a few months.

I suggest to review your Mintos Auto Invest every few months and adjust the settings as there are more and more options added to the Auto Invest that will not activate unless you do so manually.

The custom strategy let you choose loans based on currency, market, loan originator, rating, loan type, country, buyback guarantee, loan period, investment amount as well as further diversification options.

 

Set up your Mintos Auto Invest

If you are one of those investors who doesn’t want to spend too much time setting up the Mintos Auto Invest you can choose to invest in loans with buyback guarantee and fill in the general information on the bottom of the page. This will take you less than a minute!

If you actually care about your portfolio and its diversification I suggest you invest a bit more time to set up your Mintos Auto Invest.

As mentioned earlier, Mintos gives you a variety of options that will allow you to diversify your portfolio. If you are just starting out with P2P investments this might look quite confusing for you. Additionally, you might not know which information you should base your settings.

Don’t worry, I will try to give you a bit of guidance.

First, define your investment strategy!

Every investor has a different investment strategy. Someone is more risk-friendly and does not want to lock his capital for too long. Some investors tend to seek out long-term investments.

Personally, I like to invest in short-term to mid-term loans with buyback guarantee. I can either set-up my own custom Auto Invest portfolio or use the new portfolio builder called Invest & Access. 

If you don’t want to rely on the buyback guarantee you might as well exclude certain options from the Mintos Auto Invest.

 

Buyback Guarantee

The buyback guarantee is a promise from the loan originator to buy back your investment if the borrower is late with his payments for more than 60 days. It shifts the default risk from the investor back to the loan originator. Thanks to the buyback guarantee I never had a defaulted loan. However, in the unlikely event that a loan originator goes bankrupt, the buyback guarantee might not activate and the risk of default for the investor increases.

For this exact reason, it might be worth looking at least into the Mintos Statistics as well as Mintos Ratings and exclude certain parameters from your Auto Invest.

Diversify your investment

The best way to minimize the risk of default is to diversify your investment and exclude loan originators that might potentially represent a high risk.

There are two ways to go about it. First, you look into the Mintos Statistic and look at default loans or loans that led into bad debt (could not be retrieved anymore).

Mintos Statistic

The idea is simple. In this case, we would adjust the settings in our Auto Invest and exclude car loans without buyback from Mogo, that was funded in Latvia. You can also just exclude loans without buyback without other adjustments. You won’t find any loans with buyback in the statistic that defaulted. The only reason why you would want to exclude parameters individually would be the potentially higher amount of available loans that you can invest in.

Mintos Ratings

The second way how to minimize risk is to have a look at Mintos Ratings and exclude loan originators with risky ratings. Note that the ratings of loan originators are constantly changing. You can learn more about the assessment methodology under Loan Listings – Mintos Ratings.


 

Mintos Auto Invest Tips

Setting up the Mintos Auto Invest might be overwhelming for investors that are just starting out investing in P2P loans.

When it comes to setting up the Auto Invest I am aiming to decrease the time spent on this task while diversifying as much as I can to lower the potential risk.

Obviously, there is no way to eliminate the risk completely. My strategy, however, helps me generate on average more than 10% interest on my investments every year.

Researching loan originators and trying to estimate the risk alone is a very time-consuming task that does not bring as much value. In many cases, it is hard to find information about the loan originator in English language. It is more efficient to rely on the tools Mintos is offering to you (statistics and ratings) and use common sense to adjust your Mintos Auto Invest.

Copy my Mintos Auto Invest Settings

If you are too busy and don’t want to spend too much time on setting up your Auto Invest you can simply copy my settings.

I do not guarantee the exact same results, however, the chance that you will get similar results is quite high.

Here are my settings:

Currency: Euro

Most loans on the Mintos platform are listed in Euros. I also suggest you transfer funds to Mintos in EUR to avoid currency exchange fees. If you don’t have a Euro account yet, you can open one within minutes via Transferwise or Revolut

Market: Primary (for my first Auto Invest portfolio)

Primary market is listing all the new loans rather than loans that are being resold by other investors on the secondary market.

Loan Originators / Ratings / Buyback

I am excluding all loan originators that don’t offer buyback and have a lower rating than B-. You don’t need to adjust any filter within the loan originator list, just choose the ratings and the buyback options.

Countries 15/29

Currently, I am excluding the following countries from my Mintos Auto Invest:

Armenia, Botswana, Colombia, Georgia, Indonesia, Kazakhstan, Kenya, Kosovo, Mexico, North Macedonia, Philippines, Russia, Ukraine, UK

This choice is rather a personal preference. I am quite familiar with the loan niche in several countries as well as the practices by debt collectors or loan companies and the reasons why people get loans.

Interest Rate

My Auto Invest interest rate slider is currently set from 12% to 20% as I aim to get the most return for my investments.

Loan Term

I set up the max. loan period to 12 months. The loan period equals the time I am ready to lock my capital within Mintos. I can sell my investments on the secondary market if I need to do so. This comes however usually with a discount from the investor’s side. To avoid any loss in returns I rather invest into loans with the max. duration of 12 months. This means that if I need to withdraw money from Mintos I would wait for max. 12 months to retrieve all the payments back to my account.

General Information

Name: Primary Market – Choose a name that best describes your portfolio
Portfolio Size: 15.000 – Choose the max. investment amount which you want to invest through the Auto Invest
Investment in one loan: 10 – 10 – Choose the amount you want to invest into one loan (the minimum amount is €10)
Do you want to reinvest: yes – Reinvest your returns to benefit from the compound interest effect
Include loans already invested in: no – this will only harm your diversification efforts
Diversify across loan originators: yes – ideally you diversify across multiple loan originators

 

Mintos Auto Invest | Secondary Market

Since the beginning of 2019 Mintos is offering an Auto Invest for loans listed on the secondary market. Some investors speculate and use this option to increase the returns while investing in discounted loans.

If an investor decides to withdraw money from Mintos while his investments are not yet fully retrieved, the investor can sell those on the secondary market for a discounted price.

Users who set up the Auto Invest for the secondary market will be prioritized as compared to investors who invest manually on the secondary market.

Here are my settings for the Auto Invest on the secondary market:

My investment in the secondary market is rather small as I am still testing this option to see whether it increases the returns.

I set up my Auto Invest for the secondary market to invest in loans with up to 99% discount and 0% premium.

Some users increase the price for their investments and demand a premium. I am not interested in those loans at the moment.

My Mintos Auto Invest is not working – what to do?

If you are investing in P2P loans for a while you will at some point be in the situation where there are no loans at the platform to invest into.

You will notice this if you have available funds in your account while your Auto Invest is activated.

The reason why your Auto Invest is not working is due to the limits you set up in your Auto Invest. Click on your Auto Invest (edit) and scroll down to the terms of loans. If you don’t see any charts like here, there are currently no loans that match your criteria.

There are a few options to go about it:

  1. Adjust your Auto Invest settings, include other loan originators and expand the range of interest rate as well as the loan period.
  2. Do nothing and wait until new loans will be listed that match your criteria
  3. Create an Invest & Access portfolio that invests for you and diversifies your investment accross all available loans with buyback.
  4. Withdraw the balance and invest it on another platform such as PeerBerry, Envestio or EstateGuru.

 

Mintos Auto Invest Review | Final Thoughts

There is currently no other P2P platform that offers such a well developed Auto Invest as Mintos. The diversification options are almost limitless. The Mintos Auto Invest allows you to invest in P2P loans without any time investment. It’s the perfect tool for investors who prefer the passive and automated investment strategy.

This is also one of the reasons, why I personally invest in P2P loans on Mintos. If you are looking in investing some of your spare capital, Mintos might be a good option for you.

Sign up with this link and receive up to 1% cashback on your investment.

 

Need help? Comment below

Feel free to share you Auto Invest settings in the comments below. If you have any questions feel free to ask. I am happy to help.  

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