Based on investors’ expectations and suggestions about Invest & Access, we recently developed new investment strategies on Mintos. Basic functionalities were inspired by the most common habits of investors when they create their Auto Invest portfolios. Invest & Access has been replaced by three new strategies that now offer more preferences for experienced and beginner investors alike: Diversified, Conservative and High-yield. Existing Invest & Access accounts were migrated into the strategy most similar to Invest & Access – Diversified.
Performance in the first 10 days
In the 10 day period since launch on 13 August, 72% of new investors who joined Mintos activated at least one of the new strategies for their investments. The Diversified strategy, a direct successor of Invest & Access, got the most attention with 48% of new investors including this strategy in their portfolio. It is followed by the Conservative strategy used by 29% and the High-yield strategy used by 21% of new investors. Currently, a total of 35% of investors on Mintos use Diversified, Conservative, or High-yield strategy as one of the Mintos products to manage their investment portfolios.
By outstanding investment, the Conservative strategy is the most popular strategy among all Mintos investors, followed by the High-yield and the Diversified strategy.
In the period from 13 to 23 August 2020, investors have invested more than EUR 5 million with one of the new Mintos strategies.
Let’s take a closer look at how these strategies performed during the first 10 days after the launch.
The Diversified strategy’s algorithm ensures the highest diversification of investment. This strategy distributes investment across loans that come with and without buyback guarantee, from all lending companies on Mintos rated A+ to C-.
Currently, the weighted average interest rate by outstanding investment with the Diversified strategy is 9.8%, with the highest interest rate being 25%. The average invested amount from all investors with investment in the Diversified strategy is €893.
With contribution from the Invest & Access portfolios, outstanding investment in this strategy is more than € 62 million.
The Conservative strategy was developed to invest in loans with a buyback guarantee, and from lending companies with the best portfolio quality, rated A+ to B-, and 80% current loans and less than 10% in pending payments. Its main goal is to help investors build a more resilient portfolio. The average interest rate by outstanding investment in the current Conservative strategy is 9.9%. The average total invested amount by investors who use the Conservative strategy on Mintos amounts to € 1530 (including other investment products).
The High-yield strategy selects loans with the top 60% highest interest rates and with a buyback guarantee, from lending companies rated A+ to C-. It was made for investors who prioritize returns in their investment portfolios.
We noticed that the number of investors who have invested with the High-yield strategy is a bit higher than those who invested with the Conservative strategy, but their invested sums are smaller – the average invested amount with the High-yield strategy is € 640.
As one of the criteria for this strategy is that selected loans come with a buyback guarantee, the highest interest rate found in the High-yield strategy is 23%. On the other hand, the lowest interest rate with this strategy is 12%. As a result, the average interest rate by outstanding investment in Mintos High-yield strategies is 12.5%.
Mintos strategies are a fully automated way of investing, and after choosing the target investment amount, investors get a portfolio of loans that is diversified according to each strategy’s priorities. Mintos strategies are only available for investments in EUR. They offer even more liquidity opportunities for investors, with faster cash out time and without service fees.
We’re looking forward to gaining more insights about the new strategies in the upcoming months. Feedback and usage statistics enable us to adjust our products further for enhanced investors’ experience. As always, you’re welcome to share your feedback with us.