Strategies

How to monitor the market and loans repayment in order to develop more successful investment strategy

We created iuvo with intuitive and user-friendly interface. If these are your first steps into the world of Р2Р investment, iuvo will guide you through the process step by step. However, if you want to be a successful investor, it is advisable to ‘dive deep‘and get to know the platform well. It is recommendable to know the originator’s history and the borrowers’ behaviour. You should be able to assess risks and opportunities based on your own decisions and investments. Below you may see the main steps you need to follow if you want to achieve good profitability at the end of this adventure.

Step 1: Get to know the platform well

To ensure that your investment strategy will be successful, first of all you must get to know how the platform works and its model of operation. After your initial registration, take some time to review your profile well, as this will prepare you and give you the necessary background to take informed actions in future. Review the main menus – Primary market, Secondary market and Auto Investing. Based on your knowledge acquired, you will be able to use filters more effectively and to decide what type of investment – manual or automatic – works better for you. Also make sure to review our originators’ profiles – when you decide to fund a certain company, it is reasonable to know well and approve of its policy and history.

Step 2: Make a detailed review of the market

Make a detailed review of the market, as well of its filters, types of loans and their duration. Successful strategy is based on these details. It is advisable to make your investments based on sufficient preparation that will allow you to get acquainted with good and bad practices, and thus help you avoid the latter. It is good practice to select loans that match your preferences, and in the same time to conform with the loan market, in or order to avoid situations where you have nothing to invest in. Choose the optimal combination for yourself, taking into consideration that being aware of all available opportunities is the key of effective strategy. Your security is ensured by the originators – they have made preliminary assessment of borrowers based on their behavior, and have rated each loan with a score class. Use loan class to analyze your investments and find balance in order to get maximum return on your investments. More information about credit rating and how to use it, is available here.

Step 3: Measure depending on your investments

If you want to monitor the market and how loans are repaid, you need to be sure what you invest in. For example, if you invest in a loan with 7 days instalment and the last instalment is delayed 3-15 days, this is not considered a serious issue as the instalment is overdue with just a few days and not a whole month. However, if you invest in a loan with a single monthly instalment and the borrower delays the last instalment with 14 days, this is a sign that things are not going well. This also applies for various loan types – if you invest in a personal loan with no collateral, a few days delay is a reason for anxiety. However, if the overdue loan is secured with a collateral (a vehicle or a property), this is even more alarming, as these types of loans are usually a priority for the borrower, and a possible reason for the delay is that the borrower is being unable to pay.

What more do you need to know?

If you diversify your portfolio, the risk that any of the loans you invested in may become overdue would not be so alarming, as your funds will be invested in more than one type of loan, originator and loan class. If you want your investments to remain unaffected by uploading of loans on the platform and their selling out, and in order to achieve better average rate of return, it is advisable to have at least one portfolio in the higher and one in the lower loan class.

Make sure to use iuvo’s live chat support  – do not waste time in research and investigations, just share your questions and we will guide you, highlighting the advantages and disadvantages of the strategy you chose. Do not build your strategy based on friend’s advice or any recommendations given online. Another people’s experience may not always work right for you.

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