I really take my time to set my auto-invest settings. If you don’t have much time you could choose B or higher originators as I suggested in my Mintos Review earlier, and use Mintos diversification settings, however there are some originators you want to avoid, and the Mintos diversification settings are not always as diversified as you might think.
In the end you will need to decide on your own settings based on your Risk profile, however this might provide some guidance on what to look for.
If you are not sure yet what Mintos is exactly then read my Mintos review and find out.
My Mintos Investment strategy
Before we begin I do have a few requirements. Any Loan originator in my portfolio answers these requirements.
- Interest rates need to be above 10%
- Only Loan Originators that provide Buyback guarantee
- No Loans from Kosovo or Denmark (due to local regulations)
- Mintos Loan Originators need to have either interest on late payments or penalty for late payments
- I did not find any Loan Originator of C+ or lower that interests me, so they are not mentioned here
- My strategy is aimed at minimizing risk, but I do take in some risk to get better returns
Points to watch out for
Very high interest rates
Its better not to blindly chase a high interest rate, but always stand still and ask why this high interest rate is offered. It might be that the Loan Originator offers the Loans at a higher interest rate himself, so can afford it, but it might also be that the Loan Originator urgently needs cash. Which is not a bad thing necessarily, but you must always ask the right questions when investing.
Mintos Loan Originators
A lot of loan originators also use old Financial statements. While still showing only 2018 financials are suspicious but can still be somewhat forgiven, still using 2017 financials is for me a red flag and a reason to not only stop investing but also a reason to consider to sell. Also always look if Financials are audited. If they are not audited we are trusting the Loan Originator to provide proof.
|Loan originator||Mintos Rating||Invested?||What I like / Dislike|
|Aasa||B+||No||The latest Financials are from 2017. Its hard to invest based on 3 year old Financials|
|Acema||A-||No||While they have a great Mintos rating, the interest they provide is just to low for me to invest in Acema|
|AgroCredit||A-||No||Acema does not give any interest rate on delayed payments (or penalty)|
|Akulaku||B+||No||I like the large equity they have but I do not like the very low interest they give.|
|AlexCredit||B-||No||AlexCredit is making a small loss and has a low equity position|
|AlfaKredyt||B||Yes||Slightly profitable, good interest rates and interest on delayed payments|
|Banknote||A-||Yes||Good Equity, profit and interest rates on delayed payments|
|BB Finance Group||A-||No||Good Financials but to low interest rates to apeal to me|
|Capital Service||B-||Yes||Captital service is making a small profit since its latest statements and is providing great interest rates|
|Capitalia||B+||No||Capitalia is making a small loss and has low equity. The interest rates are great but to risky for me to invest in|
|CashCredit||B||No||No interest or penalty for late payments|
|Cashwagon||B-||No||Great interest rates, good transparency with financials, not profitable but Financial situation is improving|
|Cream Finance||B||Partly||Cream Finance is making a small loss but has a great Equity position. I did opt out of Danish loans since interest rates in Denmark are capped yearly at 30%|
|Credissimo||A-||No||Profitable, nice equity but very low interest rates|
|CreditStar||B||Yes||Good Financials, interest on delayed payments, decent interest rate|
|Credius||B+||Yes||Profitable, Decent Equity and decent interest rates|
|Dineo||B-||No||Profitable, good financials, interest rate on delayed payments but to low interest rates|
|Dozarplati||B-||Yes||Slightly profitable and great interest rates|
|Dziesiatka Finanse||B-||Yes||Decent Finances (about break even), interest on delayed payments, good interest rates|
|EcoFinance||B||Yes||Making a small loss, good interest rates, interest on delayed payments|
|Esto||B-||No||Break even Finacials, decent Equity, but to low interest rates considering its financial position|
|Everest Finanse||A-||Yes||Great Financials, but very difficult to get loans on the market|
|Evergreen Finance||B+||Yes||Good Finacials but difficult to get loans|
|Extra Finance||B||Yes||Decent Financials , good interest rates, interest on delayed payments|
|Finko||B+/B-/C+/C||Partly||It’s a mix of LO's with at least one good originator. That’s why I did select the B+ originator here.|
|FireOf||B||No||Small originator, Penalty income on delayed payments but very low interest rates|
|GFM||B-||No||New to Mintos, extremly nice interest rates but Financials are not yet convincing enough for me to invest|
|HipoCredit||B-||No||Not very profitable and very low equity. To risky for me to invest in. One of the sub-LO's is giving both interest rate on delayed payments and penalty for delays!|
|ID Finance||B+||Yes||They have a great sub-LO in Kazachstan that has great Financials and great interest rates. Kazachstan is the only country I selected here|
|ITF Group||B-||Yes||Financials and interest rates are just good enough! I also notice an upward trend here.|
|Iutecredit||B+||Yes||They had some bad luck with Kosovo loans, but came trough for their investors. They still have excellent Financials and give good interest rates. I continue to invest.|
|Julo||B-||No||They make some profit but they seem to be very new. The financials published are also unaudited. For now I am staying out but I will re-evaluate in some time.|
|Kredit Pintar||B+||Yes||They showed a great profit for 2018, but I am eagerly awaiting their numbers for 2019. They usually give an above average interest rate.|
|Kviku||B||Yes||Good Financials, great interest rates!|
|LFTech||B-||No||Finacials have not been updated since 2017! Its impossible to invest in this LO|
|Lime||B||Yes||Decent financials and a good interest rate|
|Mikro Kapital||A-/B+||Yes||Decent Financials, decent interest rate|
|Mogo||A||Partly||Great Financials, decent interest rate. Not all LOs give interest on delayed payments though so I unselected those countries|
|Mozipo Group||B-||No||Mozipo Group is making to big a loss for me to stay in|
|Novaloans||B+||Yes||The Loan Originator is not very large and that is increasing the risk, but he is making a profit|
|Peachy||B||No||Peachy is making a loss, I don't understand the reasoning of giving Peachy a B rating on Mintos|
|Placet Group||A-/B+||Yes||Great Financials and equity. Interest rates are a bit low, but sometimes you can pick some up with interest rate of 10%|
|Stik Credit||B-||Yes||Decent Financials but the interest rates make it hard to Find loans of this originator|
|Sun Finance||B-||No||I don't consider the financials of any of Sun Finance Sub LO's good enough to invest in|
|TASCredit||B-||Yes||TasCredit is stil small but is showing growth in 2019 Financials and is profitable|
|VIZIA||A-||Yes||Very good Financials and Equity. Decent Interest rates|
|WOWWO||B||Yes||Good Financials and Equity. Decent Interest rates|
So that totals my 27 loan originators. Keep in mind Mintos currently has 65 Loan Originators. Its hard to know that if you would blindly select all 65 originators if you would come out on top after 5 years. You would have a higher interest rate, but for sure you would also have a higher rate of default. If you diversify but you take in to much Loan Originators with bad ratings then you diversify in a bad way, and greatly increase your chances of defaults.
Mintos Diversification settings
I also do not like the default diversification settings Mintos has. It does not hold into account how many sub – origators a Loan Originator has, and it fails to account for the Risk / Return that Loan Originators bring.
These are the default Diversification with my settings:
Did you notice the big stack in the side taking up 25% of my investments? Horrible! The stack here is Finko, and as you have seen I have deselected most sub – originators from Finko, but still Mintos is treating it like I have them all selected. Additionally a few others are given a higher percentage then I would given the risk that comes with them.
I have contacted Mintos to not only point out this issue, but also to ask that my diversification settings are not overwritten every time I add a new Loan Originator. Mintos is getting a lot of new Loan Originators these days, which is great as a few are really good enough quality to make part of my portfolio, however it is a lot of work to rebalance the settings every time.
With my own settings inserted I get a much better balance. I no longer have any Mintos Loan Originators higher then 15% and those who are higher then 10% have good Financial Figures.
You can find the difference in the bellow table:
|Loan originator||Mintos Diversification Settings||My Diversification Settings|
My Mintos Portfolio
And how is it working out for me?
First I should point out the following points:
- I have a second strategy on the secondary market containing 3% of my portfolio. I only buy loans with discount here and I have a higher requirement
- I have another strategy containing 6% of my portfolio on the secondary market. This strategy is now disabled
- About 5% of my portfolio has been manually invested. Mainly to combat cash drag
- My strategy sometimes changes, so I have loan originators that I removed from my auto-invest strategy in my portfolio, although I do not sell the loans unless the financial situation of the Mintos Loan Originator drastically changes
- I have a total of 9700 EUR invested so far and a return rate of 11.38%. I know many have a higher return rate then me, but they are also willing to accept more risk.
Generally I am quite happy with my diversification and I feel every month it is slightly improving and getting more to the place where I want it to be at.
I should mention the bellow sources that I use a lot when deciding on what Mintos originators to invest in.
- Explore p2p: excellent source to check Lender ratings
- The Mintos Loan Originator page to find the latest Financials on Mintos Loan Originators
What would you do differently?
I am not perfect, I am sure improvements are possible, or you have a different preference. I am very eager to read what kind of strategy you follow, or what you like / do not like in my strategy. Leave a comment bellow and let me know!