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%).
There are some small details that you might want to understand if you invest in short-term loans, especially in loans for few days only. Understanding how interest rate is accrued and when will help you to invest money where and WHEN it makes sense.
Can you list what companies, that offer investments in EUR loans are actually providing loans in EUR? For me as an investor it is important to understand what loan originators are expected to FX risks, which is even more significant for countries like Russia where RUB had really wide swings in last few years.
Currently, such loan originators Mintos are:
BB Finance Group
Capitalia (in Latvia, Lithuania and Estonia)
Creamfinance (in Latvia)
CreditStar (in Estonia, Finland and Spain)
ID Finance (in Spain)
Mogo (Latvia, Lithuania and Estonia)
Mozipo Group (in Lithuania)
Very likely, you should use additional caution when investing in companies that do offer investments in EUR but provide loans to borrowers in other currencies.
With auto invest on Mintos you can save a lot of time and effort. Auto Invest will automatically invest into loans based on the criteria you define using your currently available funds. This is in my opinion one of the best features of Mintos. Absolutely unavoidable when you plan on investing more than couple hundreds EUR.
I do like short-term loans on Mintos as these offer high interest rate and very short time of exposure. Some of the lenders recently dropped the maximum interest rates offered. Below is current situation for short-term lenders on Mintos as of 1/13/2019.
Last week is the first full week when I switched my strategy and invest only 10 EUR in every loan. You can read more in this article. While during the same week 649 investments finished, I opened 1,514 new ones. I am quite happy with my portfolio so far!
Performance over last 7 days
You can see that my average interest rate on new investments was 13.1%. IRR on finished investments in my portfolio (wXIRR) was 12.1%. There was a significant drop in IR for new investments as both Varks and DoZarplati dropped the interest rate from 14% and 12.5% respectively. I will need to look into the availability of high-interest short-term loans as having 12% only does not seem justifiable given there are lower risk lenders that will offer stable 11% stream of income.
So far, I am also quite happy about the difference between stated IR and the IRR archieved. As you can see, currently I am +55 bps. The weighted interest rate on finished loans was 11.6%, while the investment yielded 12.1%.
Ready to invest on Mintos? You can get ~12.0% on EUR loans with buyback guarantee and even more when you invest in other currencies or loans without buyback. Now, you can additional 1% on you investment when you use this promo link.
DoZarplati is loan originator available on Mintos. DoZarplati offers mostly short-term loans with interest rates above 12% for investments with buyback guarantee in EUR. In this article you can read translated FAQ of this lender. This will help you better understand whether DoZarplati seems like good lender or not. You can compare it with what Varks has in the FAQ.
When you invest on Mintos, you can either trust that Mintos does not provide loans from companies that are incompetent, insolvent, or outright illegal, or you can do some of the research yourself. With some of the companies it is difficult as you might not understand the language the loan originator is using. In this article you can read translated FAQ of Varks. It is interesting reading as it help you understand a lot how short-term loans providers operate in general. Varks is lender on Armenia and offers quite high rates on EUR loans, up to 14%.