Advanced auto-invest strategy for Mintos

Short and advertised version

Login, click on Auto Invest.

Click on Create new Auto invest strategy

Select one of the three options that satisfies you

Press Start Investing and your new auto-invest strategy is activated. In few minutes it would get your invested money auto allocated.

That would be it! You are done under 2 minutes! 

But wait, there could be much more to this…

For you who are interested in lowering your risks, maximizing income and fully utilizing functionality that Mintos has in its offering, I would suggest you spend extra minutes creating your Custom Strategy.

In further steps I will be describing all of the settings that Mintos is offering for custom Auto invest strategy and personally find important to set.

Loan originator setting

It is natural that some of the lenders go out of business. The more trustworthy the lender is, less risk on your investment. I looked for analysis which would give indication of lenders overall risk assessment. Lucky enough this has been done and there are fellow people who try to keep lender score list updated.

Anything above and at rating 60 and above will suite for my auto-invest strategy.

This resulted in the following lenders (sorted alphabetically for easier selection on Mintos auto-invest page).

  1. Aasa
  2. Acema
  3. Banknote
  4. BB Finance / EGE
  5. Capital Service
  6. Cream Finance
  7. Credissimo
  8. Credit Star
  9. EBV Finance
  10. IFN Extra Finance
  11. ID Finance
  12. iute credit
  13. Lime Loans
  14. Mogo
  15. Placet Group
  16. Vizia

There is a blog post from Martins Valters, the COO/CFO and Co-Founder of Mintos who elaborates on what is more important – lender or the loan performance. Feel free to read upon that, however, as of now I want to lower the risk on lenders. I do not feel I have enough information on borrower performance via auto-investment settings.

Straight to Buyback Guarantee setting

We set it to Yes.

I find this important. If the borrower can not give the money back, loan originator buys back the rest of the unpaid loan and you will not lose the money. As before, there is always a risk of loan originator going bankrupt, but that is why first step on loan originator score assessment was necessary, simply to lower our risk.

Loan Type setting

I leave this setting untouched.

Probably needs more investigation and would love to hear from your experiences, however, will leave to all available options.

Country setting

I leave this setting untouched.

Other filters have reduced the number form 22 available to 16 countries. My little experience shows that there might be correlation on how wealthy country is and how soon they can repay their loan. Couple of example experiments I made was on Danish borrower who paid the loan before the term, resulting in good deal for the borrower. I, however, did not get a cent.

Next I have setup highest percentage possible with lower term, i.e. 36 months (3 years).

Fill in the section about general information, giving a good naming to identify your strategy.

Portfolio size is important if you want to separate auto-investments among several strategies.

Investment in One Loan is set to low end because this way you lower the risk by spreading across multiple loans.

Reinvest is set to Yes for continuous investment even if the loan term has ended.

Yes is also for Including the loans already invested in, which means if you have multiple auto-investment strategies, both could include the same loan.

Finally Diversify across loan originators means that platform will make sure that you have diversified portfolio according your settings above.

Diversification settings (automatic, left as is)

Additional filter settings (bonus for the patient ones)

For those who have the patience and would like to be interested in taking even little less of a risk I would suggest reading this post about golden rules of auto invest.

I take one of them rather seriously. It is about when the loan has been issued. In Additional filter for each loan originator I have set one year back in “To date” field. For example, at the time of writing this was 06.09.2018, therefore set it to 06.09.2017.

This means that filtered borrowers have been able to pay back the loan for a year already. Who would you trust your money more, someone who just got the loan or someone who had shown ability to pay it back for a whole year.

It will take some time to apply this setting, I did it for all 16 originators.

I ended up with 183 loans to potentially allocate investments. Lets have a closer look at Show summary and View all loans options.

Show summary
One of the loans as an example from Mogo originator

Interesting part is to see the payment schedule here. 23 payments without a single late payment.

I looked at multiple loans on the list, payback track record on all of them was flawless.

All what is left to do is accept the terms and press Save and Activate.

Strategy activated and given the first priority for picking the loans.

If you are not happy about your investment strategy

Mintos offers a Secondary market where you can re-buy a loan form another investor. This is a good option if you re-decide about your auto-investment strategy at later point. Played little with it and it took less than a day to sell all my 10 loans.

If you have gathered the confidence

Mintos has an offer for getting extra 1% of your daily balance which is paid in 3 installments for the first 90 days. I would also receive 1% thus, seeing it as win-win situation. If interested click here.

8 comments

  1. Hello, thank you very much for this very detailed tutorial on how to invest automatically, but if you let me ask a question,

    Is there a way to notify me if there are no loans available for my current strategy?

    It is that I configured an investment strategy, and I do not access the platform on a daily basis for a matter of time, and when I reviewed it I had an acomulated balance and it was that I was not investing because there were no loans for my current investment (and I had to modify it).

    A greeting and a great post.

    1. Hi Miguel,

      thank you for question and kind words.
      Unfortunately no, there is no such thing (yet).
      I have published more recent post how I try to avoid “empty” auto-invest portfolios by creating more than one strategy:
      https://www.investingsmall.eu/2019/01/06/mintos-auto-investment-with-5-strategies/
      Let me know if something is not explained clearly enough.

      Probably you have read Mintos affiliate newsletter where they mention long backlog of things they are willing to implement based from the investor feedback. Could be that this is one of those things, but before it gets prioritized, I will use more than one strategy.

      P.S. Nice website, a quick feedback, in section “Cupones” for Envestio. Person who invests, gets 0.5% back from his/her investment as a bonus for first 270 days. Maybe I overlooked where you mention this, but wanted to help with making it even more appealing from investor’s perspective. Other than that, good job with the easy overview of bonuses.

      1. Thanks Janis for the detail of notifying me of the error and your words to my website. For sites like yours and others I am encouraged to create my own web on the subject, although I have been investing in this kind of platforms for less than 2 years I want everyone to know my experience, soon I will add my portfolio 🙂
        A greeting.

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