This article is intended as a step by step guide for people who are looking for way of setting up auto-invest for Viventor with diversification and risk minimization in their mind.
Before we begin there is some useful information you should know about.
Important takeaways to begin with Viventor auto-invest
Additionally, AutoInvest is programmed to reinvest funds. In order to ensure reinvesting of your earnings, set your AutoInvest Portfolio Size larger than your total amount of funds on the account. For example, if your account’s total value shows € 3000, you can freely set € 10 000 (or any other number) as the upper limit of AutoInvest.
AutoInvest portfolios are prioritized according to the date of the portfolio creation, oldest portfolios are of a higher priority and newest are prioritized at a lower. In order to change the priority, you can delete or deactivate the older portfolios.
Diversification possibility in Viventor auto-invest
Step by step auto-invest settings for Viventor
The choice of risk tolerance
Let us see the Viventor loan originator rating table of ExploreP2P and select top loan originators one by one. As I chose score above 40, at the time of writing there are 11 loan originators.
Initially, I wanted to not to go below rating 50. However, by setting up a filter with Loan originators above rating 50 – diversification would become an issue. At the time of writing only Kviku has loans above 10% within 12 month period. So I decided to lower the bar to the score of 40.
Going through settings
I started with creating a new auto-invest portfolio for Credissimo.
Make sure to begin with smaller portfolio size if you want to be more careful. Reason being it took no time for Viventor to allocate my investments once I clicked on “Save and Invest”. By the time I deactivated the auto-invest portfolio, platform already did investments.
And so I continued one by one until I ended up with 11 portfolios.
Please note that only 3 of settings changed from one to another portfolio:
- Portfolio name
- Interest rate
- You can see my choice of interest rate in Interest rate column in overview picture below. To come up with those numbers I had to check the Primary market and the available loans (if any).
- Loan originator
I set the rest of Viventor auto-invest settings as in the Credissimo example screenshot.
- Portfolio size – 300 EUR
- Maximum investment in one loan – 10 EUR
- Remaining loan term, months – 0 – 12
- Maximum LTV, % – 0 – 30%
- Loan type – All (Mortgage-backed loan, Consumer loan, Invoice financing, Business loan, Line of credit, Pawnbroking loan)
- Loan status – Current
- Countries – All (Spain, Latvia, Bulgaria, Estonia, Lithuania, Netherlands, Poland, Russian Federation, North Macedonia, Sweden, Bosnia and Herzegovina, Kenya, Kazakhstan)
- Guarantee – Buyback, Payment Guarantee
- Include loans already invested in – No
In the image of auto-invest portfolios you can see that I invested 490 EUR in 49 loans and only 2 originators. I am quite inflexible with these settings because I do not want to compromise with my rule of maximum 12 month term and minimum 11% yields. All my portfolio easily could be allocated to these 2 loan originators but I aim to reduce risk by diversification.
So how to cut the cake?
As I see it there are following options here:
- Increase term – thus postponing the maturity date and increasing risk of not being able to an easy early exit via secondary market if and when necessary.
- Reduce interest rates means reducing income. Going below 11% in current Viventor loan market situation might not the perfect solution.
- Invest manually into Secondary market. Drawback of course is that this is a manual work. However, I will try to use available filters to get the most out of this.
For those who are not interested into the manual invest into Secondary market please use the first or the second option (or a mix) until you feel your portfolio is diversified enough. I will aim for equal split between 4 loan originators, i.e. around 25% to different Viventor loan originators.
Filtering Viventor’s secondary market
I have already allocated portfolios for 2 loan originators – Kviku and Atlantis Financiers. These will be excluded from my manual investment search.
So I had 9 loan originators to filter on (Ibancar, KFP, 24, Kreditu, Centras, Moment, Credit, Monify, Stik, Credit, SofCom, Lenno, Credissimo).
Filtered with same filters as above, but higher interest rates – 14% – 16%. This gave me a list of loans from Monify and KFP 24. Aimed roughly 250 EUR to each and diversified among countries where possible.
After a solid hour, got this image under my account with almost all money allocated.
Even though I had to invest time into Viventor’s secondary market manual investment, I am pretty happy about the result. I see that I achieved diversification in different loan originators and countries. Of course in ideal world the more loan originators the better, however, compromise between risk and yields has to me made. This is where you as an investor choose your affordable risk.
I hope you found this useful and please let me if anything looks odd. In fact I know many of you have already invested in Viventor, therefore would appreciate some tips and tricks.