How do you invest €5000? Results after 1 month
Review of portfolio after I started investing in p2p loans one month ago.
As always let me start by thanking you for being interested in investing smarter than on a normal savings account with the bank… Where only the bank makes a profit of and you actually go backwards against inflation.
Roughly one month ago I started my P2P Lending / Crowdfunding journey where it was clear from the start I wanted to diversify. I investigated a lot of the platforms and read up as much as I could. If you would like to take your first steps, just as I did, please do your own research and due diligence. I didn’t invest all at once, so only some have a result of the full month, some only from two weeks. But I’ll go more into detail below.
The first month is always a bit harder to base results on, as they are not always as transparent everywhere and might not give a very clear picture yet of future returns, but I’ll try to give detailed updates every month. For now my portfolio’s total is €5500.
- Mintos: On €1000 currently at €7,63 interest after one month
- Bondora: On €500 currently at €2,07 interest after one month
- Robocash: On €1000 currently at €8,58 interest after one month
- Crowdestor: On €1000 no interest yet, explained below
- Grupeer: On €1000 currently at €1,89 interest after 2,5 weeks
- Envestio: On €1000 currently at €7,25 interest after 2 weeks
Total: €27,42 interest on the €5500 investment so far. Which I have to say is not a bad first step for some passive income. Time now to let this compound interest grow. I’ll update monthly, but don’t forget, this is just a small part of the whole post.
Please let me start with the platform I decided to put my trust and the first step in. Mintos.
Current interest after 1 month = €7,17 and some Secondary Market Transactions good for €0,48. I did put some investments in current campaign rewards, expecting at least €2,5 on top of that. That should be added later on. Roughly €10 interest in one month is not a bad return at all on €1000. I also joined via an affiliate link which should give me a 1% return on my €1000 investment also in the near future. Each new investor on Mintos gets a 1% bonus on the total invested sum after 90 days when starting from a referral. You can pick this up by clicking on any link towards the platform on this blog.
Last year I had €10000 on a savings account all year… At the end of the year they paid me €10. So this is what I nearly got from Mintos in 1 month on a total amount that is 10x lower than on my bank. Makes you think twice, right?
Overall one of the biggest platforms around here and everything goes very well and smoothly. Check out how I set up the auto invest for Mintos in my previous blog post.
My second platform was Bondora.
I chose this because it’s also one of the bigger platforms with plenty of loans. However fairly quickly I decided I didn’t like the platform as much. That together with reviews I had been reading decided to only invest €500in total in this platform. I had actually started with €1000 but withdrew half. So we’ll see where this leads in the future, but to be frank, Bondora is not the platform I became very excited from even though the returns should be between 10%-14% overall, taking into account some defaulted loans.
As they are one of the only platforms in my portfolio without a buyback guarantee, the risk of having lower returns than first expected is quite real. So do take this into account.
However, for the first month my €500 brought in around €2. I messed around a bit with the €5 as first member bonus, spending €4,5 of that in the Secondary Market, so that isn’t counted in the Account value anymore but should pay itself back in the long run. This I see as learning money… But as advice to a new member from my side, I would say stay away from the secondary market in the beginning.
Also here, you can check how I set up my investments in my previous blog post, aiming for lower risk.
My third platform is Robocash, where I invested €1000 in also.
It took a little over a week to invest this amount fully. So for new investors please keep in mind that there is some cash drag even though they are working on it and have confirmed that through email conversations. I do see that when my loans come to an end, the money is re-invested within a day. So that’s a good thing. And their customer service is very friendly and replies within the day. I always value that a lot.
Currently Robocash is not giving any bonuses to new members. Most likely because they want to work on getting more loans. Which I think is a smart decision on their part – focusing on the existing investors before attracting new.
The returns are steady and good. Currently the earned interest is at €3,20, with a total of €5,38 accrued but not yet paid out. So a total of €8,58 interest after one month on €1000. I’m expecting next months to be higher as all the loans should be re-invested quickly. This interest amount has not been generated on the full amount of my investment, which I feel should be steady from now on. You can read about my auto-invest strategy here.
This brings me to the fourth platform, which is more orientated towards Business Loans and to some extent also Real Estate; Crowdestor.
I’m very fond of the background information they provide on their loans… and let’s be honest pictures always help – at least they do for me. That way you get a feel in what you are investing. You don’t get that with the previous three P2P Platforms in this post.
Unfortunately, I can’t give any numbers yet. I’ve been in contact with them, as my loan (which is only one at Crowdestor) should have paid out the 5th of July. However since I only started my investment at the end of June (26/06), they responded the combined interest of a couple of days in June together with the full month of July will be settled on the 5th of August. So I’ll show you my returns in Euro in the next portfolio update.
As my loan is at 18% for my €1000 investment in Crowdestor I’m expecting the return so far to be around €15 on the 5th of August. Let’s see in the next update how far I’m off with this calculation.
The fifth platform came more toward the end of June as I was waiting to get my salary in and I had some costs in the meantime: Grupeer.
My investment in Grupeer started on the 28th of June with another €1000. If you are looking for a way to invest €1000 this peer-to-peer platform mostly focused on Real Estate and also Businesses is a good choice.
Only a couple of interest pay-outs so far, so at this moment a bit early to say much more about it. But as they offer 15% on most of their loans – and there are plenty to invest this amount in – this for sure is a recommended platform.
At this moment only a return of €1,89 but with the option to only invest in guaranteed loans investors can be fairly certain of a steady return on their money with Grupeer.
This brings me to my last platform currently: Envestio.
I must be honest that I’m running into some costs of my apartment over the next few months (new boiler/heater, two new windows and new floor in 3 of my rooms) so it might be my last platform for a little while.
But I must admit Envestio is the platform I’m the most excited in. It has everything I love: investments in Real Estate, Businesses, Energy and Cryptocurrency farms. It has a great overview of each loan, and exactly when they pay comparing it to an investment of €1000. Which I greatly appreciate. Also their “My Investment” page is clear and updates daily the ‘Accrued interest’ column.
It’s still early, but at this moment out of my current portfolio, Envestio might be my favourite. I tried to spread around to limit the risk a little bit, but I must admit I’m mostly invested in the 22% loan yielding me a nice return already after only two weeks.
Envestio gives a €5 welcome bonus, which is a bit lower than when I joined (€7) which you can see on the screenshot below. However they do give another 0,5% on all the investments you make in the first 9 months! This basically is another €5 per €1000 invested. Not bad uh?
I’ll try to give the next update at the beginning of August, with an overview of the accrued interests of the month July.
From that point on my goal is to update with an overview of a full month. This should give all the readers a clear idea of the expectations on their investments, should you get excited from reading my blog. You can also click through here to read my First and Second blog posts.
As always, clicking through on my Affiliate links gives you a little starting bonus on all (except for Robocash at this point). And it also helps me a little bit, as this is the only source of return for my blog. So thank you very much for reading and interest in the alternative world of investing which is P2P Lending Platforms.
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Have a great day!