Peer to Peer Lending: Portfolio update Sep 2019
Hello everyone with an Investor’s Mindset!
How is everyone doing? The weather is slowly changing here in Belgium and to be honest I’m not a fan of the cold upcoming months. At work it’s also pretty hectic and busy… But whenever I look at my portfolio I get happy to see that my money is working for me and gaining interest even when I sleep or not working! Got to love that feeling.
Two months in a row with a negative number in my overview, and it’s two times the same platform for a different loan. On this one I actually took a rather substantial loss of nearly €40! As NeoFinance only lets you recover 60% of a B-type loan and this was one of €100 which defaulted. That caused this month to dip below two digit returns for the first time in a while.
Anyway lessons learned, and stay tuned for a change in my portfolio here! Now let’s dive into the details:
A huge dip going on right now on Mintos, with available loans dropping as low as 10%. We’ve seen this once a year from Mintos but I’ve not experienced this big of a drop. Loans were north of 15% not too long ago. So a tip for everyone; stock up on longer term loans when you see interest rates rise again to those heights and for now focus on 30-day loans or less.
I went over €500 sitting idle on my account, so I decided it was time to play around a bit and make it exciting for myself and also the readers. I therefor invested around €180 – my received interest on Mintos so far – into 20% interest loans by using the Currency Exchange feature to KZT. The FX conversion was instant and the fee was actually ok (€2.28). From now on I’ll use the actual exchange rate to calculate my monthly income and combine both my EUR and KZT received interest.
I should be expecting at least 16% after converting this back to EUR eventually, so it seemed worth doing for me. I was doubting to go ahead with the full amount of Available Funds. As with every investment it’s better to sometimes be a little conservative and test the waters first. Therefor my returns for October will be a bit less due to still having a big amount of idle funds, but I’m OK with that for now.
Last month we didn’t hit 2 digit interest returns on Robocash. Technically we didn’t either for September, only being €0,02 short, so I’ll forgive them for it. Let’s see if this can pick up again, as with a steady 12% interest rate on a €1100 portfolio it should.
Good thing is that with a full buyback guarantee, you know that the delayed interest is coming eventually.
What can I say about my favourite platform? They just don’t disappoint. High interest rates, interest payments are always on time and new projects are incoming at a steady pace with recent loans between 14% and 21%. Crowdestor nicely follows the pace of investments and usually has at least one loan available to invest in at each given moment. Cash drag is really at a minimum on their platform for the time being.
Next month I should have over €25 incoming from my 3 loans. Which on an initial investment of €1500 is still amazing to me.
Don’t forget I wrote a Crowdestor review in June 2019, so feel free to check it out!
I only did one transaction this month on Grupeer and that was basically re-investing my received interest of the month into a 13% loan. The minimum amount per loan is €10 so that’s nicely in line with my monthly interest. Grupeer is not the highest interest paying platform around, but is a very steady one, so good to have in a diversified portfolio.
During September I was able to invest my idle €800 into two different loans of each 17.50%. It’s actually been a long time that Envestio has active loans that aren’t immediately funded. Right now there are two still active! Respectively 16.50% and 16%. So if you still have funds collecting dust on your account I suggest you log on and get your money working again.
My Autoinvest settings would only kick in at 18% loans, so up until now I haven’t actually made use of it. In November a loan of more than €1000 is coming back so let’s see if we can make use of it before year end.
First month in a while that I’m actually below €50 received interest. But this will pick up again next month so I’m not worried about it. Timing wise with the two new loans the stars weren’t aligned yet for September.
You can check out my Auto invest settings in my recent Envestio Review.
Also! For all of you who are doubting the safety of investing on Envestio, here is an example of one of my readers actually withdrawing his profits of €500. This amount was on his bank account one day later, proof:
This is actually bad, two negative months in a row on Neo Finance, and if I’m unlucky this might become 3 in a row. This one was actually a hard hit. A €100 loan defaulted. Since it was a B-type loan I could only recover 60% of it. This ate up all my gains on the platform up until now.
Since the start this is the platform I had the most struggles with. First to get my €1000 deposit fully invested took a good while. Now to see that the B-type loans are frequently defaulting… Not the best feeling in the world.
Soon I’ll need to make a decision here, and I actually started selling all of my ongoing investments on the platform. Stay tuned for more information during next update to which other platform this money will be transferred!
I have a couple of platforms investigated and in the ‘short-list’ so to speak. If you would have any good recommendations, feel free to leave them in the comments. Maybe there are still platforms out there that I haven’t researched yet. A good starter bonus to help offset some of this loss at NeoFinance could be tempting!
So that means; NeoFinance is NOT a platform I can recommend. Most likely I’ll remove my affiliation with them soon.
As announced last month, we went up to receiving €19.21 monthly from now on. This is solely due to the fact that my received interests were re-invested into a new loan and started to work for themselves. That’s the power of compounding interest!
It does take a minimum of €100 to invest in a loan. At least now I’ll reach the next milestone a bit faster (in 4 months) which will allow me to grow even more on this platform. Always exiting!
Slow but steady wins the race? We’ll have to wait and see. I’m almost up to receiving €3 every month from Reinvest24 at this point. It would actually be a great addition if they could add a payment schedule, as that would give a lot more transparency of future interest payments.
To be fair, there are a lot of things I like on the platform, and I know the prospects on my loan are good. Just right now it’s not returning a lot yet.
I got a little excited over the weekend and reworked my own Excel. This allows for a better follow-up my dividends and stock portfolio progress. I saw on a YouTube video about investing that there are quite some nice “=googlefinance” features. So right now I have the latest stock prices, even exchange rate automatically updating my file. All I had to do was import it into a Google Spreadsheet and play around it for a while. These things always excite me. Who knew this, and investing in general, could be kind of a therapy for me from a stressful week at work. Do any of you share that excited feeling?
September was a very good month and my account peaked just over €16500, which is great as I started with €15000 not too long ago. I might add another €1000 during October as Tencent has been on my radar for a while now and is actually slightly down compared to October 2018. Adding the position doesn’t really impact my maximum tax-free dividend amount of €800 per year. Tencent only has a 0,24% dividend, but in addition to it being a company I believe in, might be a good addition at this point.
Apart from that I’ll build up a cash position as there is a lot of uncertainty in the market with loads of discussions about a potential market crash. I’ll probably stop investing in stocks for the near future and see how everything plays out. If a crash does happen, I’ll be ready to jump in again with a high discount.
Anyway I’ll leave it at this for the month of September. Thank you all for reading, and please let me know if I can answer any of your questions by leaving a comment.
I wish you all the best of luck in your own quest to financial success.
Take care everyone!