Today I will share with you how I set up my auto invest settings for Mintos, which you can put online in just 1 minute!
When I wrote my review about Mintos, there were some questions about the auto-invest settings. That’s why I will list in detail how you can set up Mintos auto investing easily and quickly.
You can set it and forget it.
I’ve been getting an 11.92% return annually with no default loans. In this post, I will share how you can also set up your Mintos auto-invest settings to replicate these results.
I will teach you all about diversification options and explain the process of setting up your Mintos auto invest settings – that will help you save time and lower the default risk that comes with peer-to-peer lending.
Side note: Mintos is currently only available for people with a European bank account.
Quick Intro To Mintos
To briefly recap: Mintos is a Peer-to-Peer lending platform that connects investors and loan originators from different countries. Interest rates vary between 5-20%. Mintos is the biggest P2P lending platform in Europe, with over 2.3 BILLION in funded loans. My current average interest rate is 12.92%.
Mintos has many loan originators in many countries, enabling you to diversify your investment geographically.
What Will You Get From Auto Investing?
Auto investing will work with any amount, starting with just €10. Auto-investing is very easy, it will:
- Invest your money automatically in hundreds of different loans
- Principal and interest payments are flowing into your account automatically
- Amount in your account will automatically be reinvested in new loans
- After months of not checking it, this will still work + compounding interests
I Do Not Recommend Mintos Investment Strategies
For Mintos auto invest setting, I would recommend using the custom strategy. I’ve once tried the Mintos Investment Strategies, which I didn’t like.
The only settings you can choose in the portfolio are the amount and reinvesting yes/no. When I choose this one I found out you could not:
- You cannot manually (de)select loan originators
- There is no option to invest only in loans with buyback guarantee
- There is no option to pre-select an interest rate
- You cannot determine the amount invested per loan
- You cannot determine the maximum term of a loan
This is not according to my personal preference and I would not recommend that to any other investor.
Below you can see what settings are the ones that you can choose:
As you can see, this is fairly limited and not recommended if you have any other personal preference.
How To Set Up Mintos Auto Invest In 1 Minute
When setting up Mintos Auto Invest, using the custom strategies that Mintos provides. You can fully customize and adjust the strategy to your preference. It’s the best option when you want to efficiently manage your portfolio and have a lower risk. You set it up once and you can check in with your investments every few months.
I do recommend to check your Mintos auto invest settings every few months, as there are options continuously being added that will not activate unless you enable them manually.
My personal auto invest strategy looks like this:
As you can see I’ve changed my Mintos auto invest settings with experience and time, to maximize my returns for the risk that I’m taking. I started with a 10% return, currently I have 11.92% annualized return.
I would love to share my best practices for the Mintos auto invest strategies with you, so you can maximize your return for your portfolio as well!
Copying My Mintos Auto Invest Settings
Most of the loans offered on Mintos are in Euros. To avoid currency exchange fees, it would be convenient to transfer funds to Mintos in EUR if available to you.
For most of my auto invest portfolio I am focusing on new loans. The secondary market means loans that are resold to you by other investors.
Loan originators: 33 different ones
I have written an entire article about which loan originators I am investing in, which is diversified based things like interest on late payments and risk rating.
Depending on what your risk tolerance is, you can select the loan originators that you would feel comfortable with.
Rating: all loan originators above B- in risk rating
I am only investing in loan originators with B- or higher in risk rating – why take the ones with a lower risk rating when you have enough available in the higher realms? You can find an explanation of Mintos ratings here on their site.
Loan types: all
I am not differentiating between loan types.
I am not differentiating between countries.
Buyback guarantee: YES
I only invest in loans with a buyback guarantee, I think that is an easy way to reduce your risk and get more return.
The buyback guarantee means that the loan originator repurchases the loan from you as an investor, as soon as the payment of delayed by more than 60 days. They will pay you the principal amount that is outstanding at that point in time, plus interest income that you have yet to receive. This means you will still get the return you were expecting to receive.
I currently have different auto invest strategies. My most important one has an interest rate of 14%-20.5%, then I create strategies for lower rates. My highest interest rate strategy is the most important, meaning that when loans are available they will be filled first (Priority is 1).
I set up a maximum loan term of 24 months. This means that when I stop putting new money into investments, I will have my money back within 24 months. If I want to, I can also sell investments in the secondary market if needed.
Name: Over 14% – you can choose your own name that best fits with your portfolio
Portfolio Size: 500 – you can choose the maximum amount you want to invest through auto invest.
Investment in one loan: 10-30 – you can choose the amount you want to invest in one loan, where the minimum amount is €10
Do you want to reinvest?: Yes – if you reinvest your returns you will get compounded returns over time
Include loans already invested in: No – you can choose no if you want to diversify your loans
Diversify across loan originators: Yes – you can choose yes if you want to diversify your loans
Side note: if there are new loan originators, loan types, or countries, you have to manually enable them. I recommend you go through your investment strategies every few months to enable them manually.
You accept by ticking ‘ Assignment Agreements’ and you press ‘Save and Activate’
YOU’RE DONE – YOU’RE ACTIVE ON MINTOS!
My Mistakes With Mintos Auto Invest
- Starting with too low interest rates – there are many loans available on Mintos with a higher interest rate, so why choose the low ones?
- Selecting loans without buyback guarantee – why would I want to take more risk, when I can select loans for the same interest rate with buyback guarantee?
- Not selecting a maximum term – why would you want a mortgage of 220 months, when you can sorter term loans with more liquidity?
How To Set Up Mintos Auto Invest For The Secondary Market
When you want to sell your investments with Mintos, you can do so in the secondary market. My settings for the secondary market are the following:
I’m testing the investment in the secondary market, meaning my investment is rather small compared to my entire portfolio.
I am focusing on loans that are offered at a discount with a minimum interest of 15% and a buyback guarantee.
What To Do If Your Mintos Auto Invest Is Not Working?
It is possible that you’re investing in Peer-to-Peer loans for a while, but all of a sudden there are no loans on the platform that you can invest into. You will have available funds in your account, how is that possible when your auto invest is activated?
If can be that there are no loans available for your criteria during a specific amount of time. Click on you auto invest > edit, and scroll down until you see the below screen to check if there are loans available with your filters:
There are a few options if you’re settings are not working:
- Adjust your auto invest setting – you can adjust things like include other loan originators and try to expand the range of interest rate or loan period.
- Sit back and wait until there are new loans with your criteria listed
- Create an Invest & Access portfolio that invests for you and automatically diversifies in available loans with buyback guarantee.
- Take out the money and invest it on another platform like Grupeer or Crowdestor.
Mintos Auto Invest Review – Conclusion
Mintos is one of the top P2P platform in terms of auto invest options. The diversification options are limitless and it allows you to invest in your P2P loans without much time investment. It is perfect for investors who love passive and automated investments.
Auto invest and the convenience of it is one of the reasons why I invest in Mintos – together with the fact that it’s simply a solid platform with many diversification options and great returns.
If you are looking to spend some of your money and get great return potential, Mintos might just be the option for you.
Sign up with this link and receive up to 0.5% cashback on your investment made within the first 90 days.