How to invest in Mintos with 10+% return
As I wrote in my previous post I use Mintos for investing in MicroLoans. My strategy for investing with Mintos is in loans from issuers in European Union with buyback guarantee. The EU part due to stricter regulations for lending businesses and the second in order to make sure that if for 2 months the loan is not paid back the issuer of the loan will pay the capital and interest accrued and buy back the loan.
Now let’s start with a tutorial style how to. I am skipping the part of registration and topping up the account with your first amount to invest. Only a tip for topping up you can use Revolut to send a SEPA transfer to the Mintos IBAN without any fees, do not forget to add your investor ID as a comment.
Let’s follow this steps,
1) Click on Invest – Auto Invest, on a PC it’s two steps, first click Invest and on the next page click Primary Market. The Invest & Access page is pretty much useless, I will explain later.
2) Click on Create new Auto Invest Strategy
3) Click on Custom Strategy
4) On the next screen we want Issuers only from EU countries,with Buyback guarantee and in Euro, select from the Currency Dropdown. So from the dropdown on Buyback Guarantee uncheck No.
5) From the Country dropdown uncheck non EU countries.After unchecking a bunch of boxes it will look something like this
Yes no UK due to brexit.
6) Set the Interest Rate to 10.5%.
7) Fill in the Strategy Name
8) Fill in the Portfolio Size it should be a little larger than your deposited amount to take into account future growth.
9) Fill in Investment in one Loan I usually set 10€-20€
10) Change the toggle to No for Diversify across loan originators
11) Check the checkbox I accept the terms of Assignment Agreements
12) Click on Show matching Loans, a number should appear and the graphs should be updated
13) If everything seems OK click Save and Activate
After this the Auto Invest functionality will kick in and start investing.
The second auto Invest strategy is for Secondary transactions. So from the Auto Invest page
1) Click Create New Auto Invest strategy
2) Click on Custom Strategy
3)Click Secondary from the Market Radio button
4)On the next screen we want Issuers only from EU countries,with Buyback guarantee and in Euro, select from the Currency Dropdown. So from the dropdown on Buyback Guarantee uncheck No.
5)From the Country drop down uncheck non-EU countries.After unchecking a bunch of boxes it will look something like this.
6) On Interest Rate set 10%
7) On Discount/Premium leave it as is.
8) Remaining Loan Terms set 0m to 6m
9) Add a Strategy Name
10) Set A Portfolio size it should be smaller than you main
11) In Investment in One Loan set 1 – 9.99€
12) Select No on the Diversify across loan originators
13) Check the I accept the terms of Assignment Agreements checkbox
14) Click on Show matching Loans, a number should appear and the graphs should be updated.
14) If everything seems OK click Save and Activate
All set now. From now own any funds available on your account will be automatically invested.
So sit back and let your account grow. I would suggest to check back every now and then to check that the auto invest strategies are working, in case the loan rates have fallen or something like that.
I have being using Mintos for almost 2 years now and my account is growing with a 12% Net Annual Return. I intent to continue using it and increasing my position my goal is to be my 30% of my investments excluding cash. I would like to have my portfolio to a 60-30-10 ratio, where 60% is stocks, 30% is loans and 10% other investments.
My current portfolio value is shown here
So it seems I have a lot more to study for stocks. As the microloans are on track for the 30%.