Category: Strategies

Strategies for Auto Investing

Strategies

If you’re reading this, then you must be coming from the previous article, where we guided you through the basics of the Auto-Invest feature on iuvo; or from the one where we explained when and why you should use it. If not, then you should go read them so that this one can feel more familiar.

Now, for everyone who’s already familiar with the previous blog posts on the topic – let’s join forces and explore some Auto-Invest strategies, which will help you achieve maximum returns! We’ll split them into three categories.

 

Long-term

P2P lending’s real charm is that it can be used as a long-term instrument for passive income. Actual results start showing if you’re persistent, and it starts paying off when you pass the one-year mark. Long-term investment strategies allow you to start conservatively and then experiment as you go (and as your comfort zone expands). For Auto-Invest specifically, we recommend you keep it as simple as possible – follow the K.I.S.S. rule.

To setup Auto-Invest in a way that matches your long-term goals, first, choose the interest rate range. You may try to invest in loans between 9% and 12%. Then, select the installment type. For a long-term investment portfolio preferably stick to 7-day installments. The frequent installment setup means you will receive your principal often and be able to reinvest it. In the long run, this will raise your profitability. Also, it allows you to exit from an investment much faster (especially compared to 30-day installment loans).

Last but not least – stick to a lower risk level. It’s best to choose loans that already have 3 or 4 installments paid. If there are no such loans available at the moment, then aim for loans with at least two payments already made.

 

Short term

Short-term strategies are perfect for when you want to test the platform and explore the scope of achievable profitability. Again, you can start with 7-day installments type. For your short-term investment, select 14% to 15% in EUR, or 12% to 15% in BGN, to be the expected return. Leave the field for loan status blank. That way you’ll invest in all loans, regardless of whether they’re current or delayed. Investing in delayed loans is a good idea if you want to reach higher profit because you will take advantage of receiving late fees on top of the interest.

Don’t worry about the funds you invest initially – the Buy-back guarantee keeps you safe in case a delayed loan you`ve financed goes default. If this happens, you will receive your money in 60 days and be able to reinvest it.

Finally – diversify, diversify, diversify. We suggest you split your available funds into small portions and, e.g., invest 10 EUR or BGN in every single loan. If you have a more substantial amount, like 10 000 EUR or more, you may try with 50 EUR per loan.

 

Two or more investment portfolios

Continuing with the same topic – if you want to diversify your investments and maximize your profit really, one auto portfolio is not enough. That is why we suggest you set up at least two.

We’ll give you an example of how to create two portfolios. So far, we were talking about more conservative strategies. Now let’s lay out an “aggressive” strategy which can help you achieve maximum return.

Let’s say you`ve deposited 3000 EUR. You want to invest them in loans with interest rate between 14% and 15%, so you go and set up this criterion in the filters. Don’t set any filters for status. Instead, invest in all loans, hoping to get a bigger chunk of delayed ones and thus gain additional profit from the late fees. As always, search for loans that have at least three paid installments. Lastly, opt for 7-day installments.

Having finished with filtering, you should now set up the portfolio size to be precisely 3 000 EUR. This way you will invest the whole amount at once. It’s good to set a smaller limit per investment, e.g., 20 EUR, so the total size of the portfolio is split between many loans.

Now, it’s time to set up the second portfolio. Again, only choose loans with 7-day installments. Also, keep the same interest percent range. The only different setting should be the number of paid installments – preferably set it to 5 or 6. Finally, set the portfolio size to be 300 EUR, for a start. And – you’re done! Later on, you can increase the size, but don’t focus on that immediately.

So, what will happen from now on? The second portfolio will collect all the profit from the first one and will invest it in current loans which are more likely to bring you higher interest. You take advantage of two benefits at the same time – the initial leverage of late fees from the first portfolio, and the higher probability of getting high interest from the second portfolio.

We hope you’ve found this useful, and we’re keeping our fingers crossed that your investments are successful! If you have any questions, please refer to our Blog, our FAQ section, or the lovely people from our Customer Support team at [email protected]!

When and why you should use Auto Invest

Strategies

In the previous article, we taught you all about manual investing – when and how to do it, as well as some useful strategies. Now we’d like to introduce you to the Auto-Invest feature.

 

Why should I use Auto Invest?

Because it saves you time

Manual investing gives you the freedom to “micromanage” your portfolio and perform a detailed check on every loan you’re investing in. As handy as this is, you have to spare a reasonable amount of time to log in every day and scan for loans that match your criteria. If you have a more substantial free capital to invest, manual investing will be a tedious task and might take you hours on end.

With Auto Invest, you don’t have to log in each day. You simply set up the feature, and then forget about it. It’s straightforward to stop it, whenever you decide to. We’ll talk about that again in a bit.

 

Multiplies your earnings

Another advantage of Auto Invest is that it helps you evade the so-called “cash drag.” Cash drag is the phenomenon where you hold a certain amount of your free funds in cash, and it doesn’t receive any exposure to the market. In simpler words – you invest, earn some money, and then cash out.

With Auto Invest, you can automatically reinvest your earnings, and then earn even more from the compound interest! The compound interest is a great way to scale your profits; it’s interest that goes on top of the principal of a loan, and on top of accumulated interest from previous periods.

 

When should I use Auto Invest?

Before you ponder about using Auto Invest, make sure you’re familiar and comfortable with manual investing on the Primary Market. It’s best to do manual investing for a certain amount of time, and be completely comfortable using filters, browsing through loan details and comparing borrower profiles.

By that moment, you will have already earned some profit and seen how the platform works. It’s only natural to want to diversify your portfolio and explore options for scaling your profit. This when you’re ready to use Auto Invest.

 

How do I set it up?

After login, go to the Auto Invest page in your account and fill the form. You can set up more than one portfolio, and each portfolio can have a different size. E.g., you can have three separate portfolios, each for 200 EUR, which apply different pre-set investment criteria. Also, you can set a maximum investment amount per loan, say – 10 EUR. That means you will invest up to 200 EUR, in up to 20 loan offerings. Of course, these numbers are illustrative – portfolio sizes and investment amounts are your calls.

How about the investment criteria? Knowing your way around the Primary market and its filters, you should already have a good idea on what kind of loans and what type of borrower profiles you’re targeting. You can either use the same filters as when you do manual investing or – diversify even further. For example, you can spare the “simpler,” “lower risk” filters for your Auto Invest portfolio, and leave only the high-risk ones for manual check and manual investing. We’ll go into further detail in our next article, which will be all about strategies for successful Auto Investing.

 

How does it work? What happens when I run out of free funds?

As mentioned, you can have one or more Auto Invest portfolios. They will all do the same thing – automated investing of all your available funds. So, how does it happen? It’s straightforward: once our software finds a loan that matches your criteria, it will put your pre-set investment amount into that loan; and will continue doing that, until it reaches the limits you`ve given it.

If you run out of free funds, your portfolios will start re-investing your profit, which, in turn, will start piling up that sweet compound interest we mentioned earlier.

 

Can I stop it?

Of course! Select the portfolio you want to dismiss, and hit “Pause.” This will allow you to resume if you decide to. If you want to delete that portfolio altogether, press “Cancel.”

We hope this has been an insightful introduction to the Auto Invest option and its benefits. Stay tuned for the next article, where we will describe some useful strategies you can use with this feature!

Strategies for Manual Investing

Strategies

If you’re reading this, you’ve probably already gone past the point of learning what P2P lending is, and have already chosen your preferred platform. We’re glad you decided to trust iuvo! We’ve decided to compile two separate articles that introduce you to manual investing and auto investing. We hope that they will help you choose which path to follow.

 

What is manual investing?

This is the base investment option at iuvo. Straightforward as is, manual investing simply means that you will personally go to the Primary market, scan through loan offers, read each one’s details, and decide where to invest (or not invest) your free funds.

When done right, manual investing will allow you to increase your annual return. It’s particularly handy for loans with higher risk – unless you feel fortunate, it’s not a smart idea to do Auto Invest in this type of loans.

 

Why invest manually?

Compared to most p2p platforms, iuvo is heaven for manual investing. One of our main advantages is that we work very hard to ensure high liquidity. At any given moment, we offer around ten thousand loans to choose from. Why does this matter? Well, if we don’t provide a respectable quantity and variety of loans, you might not be able to find any that fit your strategy. Even worse – you might be forced to make changes to your strategy, so that you can make use of what’s published on the platform. We shouldn’t let this happen!

Another big advantage is the amount of information provided for each loan. Iuvo lets you see details, like the borrower’s gender, age, salary, work industry and so on. These are of immense help when trying to understand the perfect borrower profile. Also, we enable you to examine the borrower`s profile without putting them at any risk – we can’t access (or share) data that makes them identifiable, like their name and ID number.

Aside from personal and demographic info, what makes iuvo unique is that we show the due dates and payment history of each loan. You can check the exact delay of payments while searching for loans on the Primary market. Thus you’re able to estimate their payment patterns, and decide whether you want to invest in their loan, or not.

 

What are the best strategies for manual investing?

To find the answer to this question, we don’t need to look further than our backyard, or in other words: our most profitable members that invest manually. Based on these people’s success, we’ve prepared three great strategic approaches to manual investing.

 

1. Easy – for people who are just getting started with p2p lending

Open a loan’s payment history an­­d study it. Choose “older” loans that already have a few paid installments. Check the payment dates, and study the payment pattern. Whether in delay or current, look for loans where there is some consistency of payments. Avoid borrowers with irregular payment patterns!

Example: Let’s compare two current loans with 30-day installments and two installments already paid. One of the borrowers has made two monthly payments on the same day of each month, and the other one has gone with a single payment in the second month – covering both installments at once. In a similar case, you should always choose the first loan: it has a better chance to be paid out month-to-month.

2. Medium – for people who have already gotten around p2p lending

Use the filters to narrow the offerings down to delayed loans only. Go through a few loans’ details. Search for late credits whose borrowers have a high probability of making a payment.

Example: Ideally you want to find a loan that is between 30 and 55 days in delay and has at least three paid installments – in cases like that there are late fees due.  Based on the borrower’s payment pattern, try to estimate how likely it is for them to make a payment before reaching 60 days in delay. If you believe it to be very reasonable – INVEST. If they do pay, it boosts your profit (because of the late fees). If they don’t, you’re protected by the Buy-Back guarantee.

3. Hard – for investment and math gurus

If you’re great at math, and/or have experience in scoring, you can use statistics to narrow down a profile for the loans you want to invest in, based on the personal data provided for each borrower. Export the available credits from Primary Market to Excel and start playing with data, like age, gender, % of monthly installments from their income, work industry, location of the borrower (city and country), etc.

 

How about the secondary market?

Our Secondary market can also have its place in your manual investing strategy. You have to be careful though, because the Secondary market is the only way you can turn а negative profit on iuvo – due to the discount/premium sellers may apply. Before you start buying or selling on the secondary market, make sure you understand very well how these two work! Here’s a useful article for you: Secondary market and the benefits it carries

We hope these strategies will help you succeed. As always, feel free check out our Blog and FAQ sections for more useful information. We update them regularly to keep you posted on news, trends, and various features of the platform!

Seven investment gifts from the iuvo team

Strategies

Christmas is just around the corner, and the iuvo team has a few presents for our dear users. It`s something that can help compensate for all the money you’ve spent on presents, cards and fancy wrappings, but it will serve you even better in the long run. However, for the gift to be useful, you still have to use it wisely and get into an investment kind of mindset. Our gift to you is this article of seven valuable investment tips from each member of the iuvo team. The tips provide brief information on each member and present his unique perception on the p2p investment field, providing insights that can make your investments even more profitable.

So, get comfortable, pour yourself a nice hot cup of cocoa and read on.

1. “Try to regularly allocate a separate portion of your salary that won`t affect your monthly budget. By doing so, you will have a savings budget that can help you make a trip or realize another dream in the future.”

From Nikolina Ivanova – an integral part of our support team. She`s always dedicated to providing the best services to our clients and likes taking on new challenges. Nikolina is a fan of good the cinema and literature.

2. “Automate! The easiest way to achieve your short and long-term financial goals, if they are defined, is to automate the investment process. By using the automatic investment feature on the Iuvo platform you save up a lot of time by not re-investing your funds by yourself, but you also keep your portfolio diversified to achieve optimal profitability. This functionality enables you to manage your investment strategy in a quick, easy and efficient way. After that, you can simply relax and watch your money do all the work for you!”

From Miroslav Metodiev – the latest addition to our team and the person responsible for the well-being of the whole project. Miroslav has extensive experience in bank and nonbank financial institutions and is interested in anything related to financial markets.

3. “Fully utilize the opportunities we present to you. Try out new strategies with different currencies, originators and loan rating classes. Always benchmark your results and draw conclusions.”

From Vladimira Lulova – the person who manages our customer support team and makes sure, that each of our clients gets the information he needs. She has over seven years of experience in developing support teams and believes that work develops positive qualities in a person.

4. “Don’t hesitate to invest in loans that have a “late” status. By doing so, you can capitalize on the lucrative expiration taxes and achieve great profitability.”

From Daniela Yordanova – a vital part of the iuvo team who`s been with us for over a year. She likes reading books, doing sports and getting to know new people.

5. “Reinvest! You should always, immediately reinvest any funds available in your account, regardless of whether you use the automatic investment feature or invest manually on the Primary market. Reinvesting is the best approach for achieving high profitability and the shortest path to unlocking the potential of compound interest.”

From Ivan Milev – a member of the team since the very beginning. Ivan is the person responsible for improving the overall user experience on the platform and integrating useful new functionalities. He has extensive experience in many business-related fields and has worked with internationally acclaimed companies and institutions.

6. “Use iuvo to diversify your investment basket. Don`t forget that a good long-term investment is achieved through a well-diversified investment portfolio. Iuvo offers you exactly that, a secure option that brings high profitability. Of course, you can invest in volatile instruments such as currencies, shares or stocks, or you can also follow the speculative wave of investing in cryptocurrencies. I will always be a fan of speculative trading on financial markets, but that doesn`t mean you shouldn`t hedge the risk. In my opinion, any speculative profit should be reinvested in iuvo, where you get a high return, and your investment is secure.”

From Hristo Andreev – the person responsible for all marketing related tasks at iuvo. He has extensive professional experience in both financial companies and start-ups. In his free time, Hristo likes to snowboard and get lost in the woods.

7. “Use the full potential of the platform by experimenting with the auto-invest filters. For example, you can create a quick liquidity filter by setting your portfolio to invest only in weekly credits that have four payments left until they`re paid off. You can stop the filter and all profit on related investments will be regained in 4 weeks, which can be a great help in time of financial need. You can also implement this approach with biweekly or monthly loans.”

From Ivaylo Ivanov – the CEO of the company. Ivaylo has deep faith in the value of iuvo as a platform that can help its users regain control over their finances and enable them to make the best decisions regarding their financial stability. He is a passionate fin- tech expert with extensive experience in business development, consultation and project management.

We hope that you`ve found these gifts useful and apply them to your investment process. With that being said, we`d like to wish you very happy holidays and a celebration filled with laughter and festive spirit. Let 2018 be a year during which you achieve all your financial goals and dreams!

Happy Holidays