Auto Invest on Mintos

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.

How to Create Auto Invest on Mintos

This step by step guide will explain how to create your first auto invest strategy on Mintos.

First, navigate to the auto invest page on Mintos:

Mintos auto invest. Top menu
After log-in, click on Auto Invest in the top menu.

On the auto invest page you will see strategies you created. Also, there is a button to create new strategy. Click on it to create one:

Mintos auto invest, create new auto invest strategy.
Click on the “Create new Auto Invest strategy”

On the next page you can decide between pre-defined Mintos strategies and custom strategy. Click on “Custom Strategy”:

Mintos Auto Invest, create custom strategy.
Click on “Custom Strategy”

This will bring you to main editor of strategy:

Mintos - auto invest strategy editor.
Editor of auto invest strategy.

First, you need to select the currency. I have only one which is pre-selected and so I invest in EUR. Next, choose between strategy for primary and secondary market. I recommend starting with primary one as secondary market has some specifics.

Then, you can select combination of multiple filters for your investments:

  • Loan Originator
  • Rating
  • Loan Type
  • Country
  • Buyback Guranatee

I always start with buyback guarantee. Save yourself some pain and always start by selection “Yes” for this option. Click on the small arrow next to “Buyback Guarantee” and un-check “No”. You will end up with:

Mintos. Buyback guarantee configuration.
Go for investments with buyback gurantee only.

The other filter I recommend using is the rating. Especially when you are just starting out, filter out loan originators that have below average rating, B-, C+, C, D. There will still be plenty investments left:

Mintos: Eliminate below average lenders.
Eliminate below average lenders.

Auto Invest – Lender Details

If you want (and you don’t have to) you can adjust configuration for individual lenders as well. By clicking on the small arrow on the right side of each lender’s name, you will see additional configuration. Example below:

Mintos auto invest - configuration of single lender.

You can filter for remaining principal, loan status, investment structure. Also available are amortization method, issue date, listing date and borrower APR. I personally found little use for these. Note that loan status is pre-selected for “Current” automatically. Very likely you don’t want to invest in past due loans. It can be profitable, but only in specific cases.

Interest Rate and Term Selection

Below the list of originators, you will have the possibility to choose range of interest rates and terms you want to invest in:

Mintos - selection of interest rate and term.
Auto Invest – selection of interest rate and term

The exact configuration depends on your investment strategy, however you should follow at least few guidelines:

  • always restrict the maximum term – you will not get any higher interest when you invest in loans for 84 months
  • do not restrict interest rate and set only minimum; if someone is willing to pay 20% (unlikely), then go for it

General Information About Portfolio

The last section of auto invest configuration looks like this:

Mintos auto invest. General information about your portfolio.

General information about your portfolio

First, provide some descriptive name. In portfolio size, enter to maximum amount that can be invested in this strategy. This is investment outstanding amount so new investments can be added as old will be repaid. Do not start with 100% of your available funds if you are doing this for the first time!

Investment in one loan has lower and upper bound. The minimum you can set is 10 EUR and I recommend setting 10 EUR as maximum as well. On the right side you have three choices to make:

  • reinvest – go for yes as this will allow your money to work continuously
  • include loans already invested in – choose no so that you can maximize the number of loans you are invested in
  • diversify across loan originators – I personally choose no, but here you need to make your own decision; not however that diversification does not work across multiple auto invest strategies. You always need to control for diversification on the entire portfolio level, not per strategy.

After you check acceptance of the terms and conditions you are good to hit “Save and Activate”. This will make your strategy active immediately. You can also only save the strategy (and not activate it) by clicking on the “Save” button.

Edit and Sort Auto Invest Strategies

On your auto invest page you will see list of strategies you created:

List of strategies
List of auto invest strategies.

If you hover over the number in priority column, you can move the strategy up or down. If needed, you can stop the strategy (deactivate it) by clicking on “Stop” link. The strategy will then not invest in any new loans. The “Edit” link will bring you to the same strategy editor discussed above. Finally, the “Delete” button will permanently remove the strategy from the list. Note, that investments in that strategy will not bee removed or sold. Everything that was invested in through deleted auto invest strategy will still remain in your portfolio.

Set the limit of minimum funds in the account

On the page with list of auto invest strategies you also have the option to set the minimum amount of funds that you would like to keep available in the account:

Mintos - Set the limit of minimum funds in the account.
Set the limit of minimum funds in the account.

This comes handy when you invest manually as well as using auto invest. From time to time I will use this feature to test new lenders. I will handpick the loans that are representative of my future intended auto invest strategy. Once I see the first result I will set the limit again to 0 and create automated strategy.

What not to do

Do NOT Use Mintos Investment Strategies

Do NOT use the pre-defined Mintos investment strategies. While these strategies might be a little bit more diversified across more lenders, it will generally provide your with lower interest gains. Mintos offers wide spread of interest rates (even for EUR loans with buyback guarantee). The pre-defined auto-invest strategies will use also loans with lower interests. Do you really want to invest in a loan for 7% when there is another available with 12% interest rate from lender with comparable risk?

Mintos - pre-defined strategies.
Mintos – pre-defined auto invest strategies

I honestly don’t see a reason why you would ever want to use any of these strategies. Manual investment or simple auto invest strategy will be better fo you.

What to do

Pilot Strategies

There is a lot of configuration options for auto invest. As a result, it is quite easy to make a mistake. Until you will learn all the details, test your strategies. Use small amount of funds available as limit and let the strategy run for few days. You will quickly see whether you get really the investments you wanted.

Invest Minimum Amounts

There is really not any reason to invest more than the minimum. This is currently 10 EUR. Minimum investments will allow to invest more loans, decrease variability of returns and learn more from finished investments. See my previous article with more details on this.

Sort Strategies

Sort strategies wisely – although Mintos does not share how it allocates investments to individual investors, we know that Mintos evaluates strategies with higher priorities first.

Only when no loans are available or limit of the strategy is achieved, next auto invest strategy is comes into considerations. As an example,take two lenders with the same risk and same terms of loans. You would like to have the one with higher interest rate in the auto invest strategy with higher priority.

Check Auto Invest Strategies Weekly

I recommend that you check your auto invest strategy at least once every week. There are several things you need to look for. Are new loans still being booked? It might be the case that you utilized the full limit of your strategy. Do you want to increase it?

Maybe the interest rate or terms offered on Mintos changed and your strategy is not getting any new loans. In that case you may want to adjust the strategy or create new one.

Is the return you are getting what you expected? The buyback strategies of lenders can effect the real interest you get. I highly recommend that you analyze finished loans to understand whether you are really making what Mintos promised. You can see statistics for my portfolio here.

Are there better options? Sometimes, Mintos marketplace will offer higher interest rates for the same term of from lenders with lower risk. In this case you want to adjust your auto invest strategy so that you are still making maximum possible with reasonable risk.

Auto Invest Q&A

Will Auto Invest use more money than I have available?

Never! Any auto invest strategy will only use the funds you have available. You don’t have to worry about investing more than you want

Can I delete strategy safely?

Deletion of strategy will not trigger anything. No investments will be sold, no movement of any funds. The only thing you will loose is the possibility to see what current investments are from which auto investment strategy.

Is Auto Invest Dangerous?

The only dangerous thing is incorrect configuration. If you double check your configuration and follow guide in this article, auto invest is safe. Note however, that investments made through auto invest are not reversible.

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