Staying Fully Invested on Mintos

One of the topics that I have not discussed before is the importance of staying fully invested. On Mintos, when your auto invest strategy is not set properly you may end up with significant portion of your funds unused.

Such situation is affecting your overall profitability on Mintos as measured against the total amount of money you have on Mintos. This is actually only the only metric that makes sense. Consider an example where you have $10,000 on Mintos overal, but only $1,000 is invested with %10 interest rate. This way you would end up with only 1% interest on the total amount you sent to Mintos, not really impressive.

To avoid such situation you need to keep checking Mintos for the balance that is not invested. Best you would like to $0 as your balance every day. This is not really achievable, but you can get close by having auto-invest strategy that is reasonably configured. This means that:

  • there are always loans that can be invested in (you need to sacrifice a little bit of interest income for this)
  • there is always some unused limit of the auto invest strategy

In my statistics I report two useful numbers – average daily balance (ADB) and average daily investment (ADI). To calculate ADB I will sum end of day balance for each day of the month and then take average. For ADI I will take sum of end of day investment for each day of the month and then take average.

Comparing ADB and ADI will give you good insight into how good you are in utilizing all of your funds. Best you would want for ADI to be equal to ADB. This is almost impossible, but you can get close. My statistics report on the ADI/ADB ratio to inform me how well I can utilize my money. Over last 7 months I have been able to stay above 98%. As an example, with interest rate of 11.5% on invested amount, interest on all my funds would be 11.27% (11.5% * 98%).

Risk vs Return on Investment on Mintos

When you are trying to optimize your portfolio, there are three basic components: time, risk, and return on investment. In this regard, investing on P2P platform is no different in comparison to stock market. You can apply really simple logic when you allocate your investments on Mintos (but do not forget diversification rules discussed in previous article). In this article I will show my up-to-date results and discuss if there are opportunities for improvement.

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