Envestio secondary market

Some time during late 2018 and beginning of 2019 Envestio introduced secondary market with possibility to sell investments.

I could not find any information on Envestio’s website about secondary market. In this post I plan to talk more about selling an investment and if there is any cost to it.

First, you need to go to the list of your active investments under Investments -> My Investments.

Find the investment which you want to sell (multiple selection is not possible) and click View.

There you will find a investment details page.

After clicking the Sell button, you are shown a short summary of what the cost of selling is.

Actual cost is:

  • Losses due to premature selling: all interests received so far
  • Penalty for sold investment: (1 – (166.25/175)) * 100 = additional 5% as penalty

When the investment is placed on market, it appears in active investment list. This way I bought 175 EUR worth of shares in project of particular example. It was shown as separate line in the investment list because project was fully funded earlier and someone decided to sell his/her shares.

Conclusion

I was considering to sell my investments with 15% rate and choosing project with more profitable rate, i.e., 16.2%.

Conclusion is that, after considering the costs, swap does not pay off. I would gain 1.2% but penalty rate alone is 5%.

However, I must admit, this is a nice addition to Envestio. Instead of being locked into the investment until the end of its term, you can now sell it if you change your mind.

Being able to liquidize your investment before its term is one of the main features of crowdlending platform.

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