Investments, Strategies

How to make my investment more efficient?

The world is driven by curiosity. Historically, it was our predecessors’ curiosity about the new and the unknown that shaped the evolution of the world to get to our present days. Today, technologies enable us, at the micro level, to explore new places and expand our knowledge with just one click or to be narrow specialists in an area of interest to us. It is your curiosity about investment that drives you here now.

When it comes to investments, the statement that information is the new gold is completely up to date. If you are at the beginning of your experience as an investor, then you are probably asking yourself whether you are efficiently allocating your funds and how you can improve your performance. We have prepared some recommendations on how to make more efficient investments.

Review your portfolio regularly

Investing in P2P loans is really easy when you establish a routine and develop a personal investing strategy. Until then, it’s good to follow some simple rules. Rule number one: if you have just entered the investment world, you should review your portfolio on a regular basis. If you invest your funds manually, you should always make sure that the amounts in your portfolio are always invested. Free funds do not bring you profit and you don’t benefit from them, therefore it is a good idea to keep track of what happens to your account and make changes when you consider it necessary. For example, you may see new opportunities to invest further and increase the size of your portfolio.

Pay attention to the filters you choose. In your pursuit of optimal returns, you may have narrowed your investment criteria too much and that may be why your free funds are not being fully utilized. The best advice we can give you is to allocate your investments. In other words – invest smaller amounts in more loans, instead of higher amounts in few loans. The reason for doing so: investment in more loans has a faster return, thus freeing up new funds for investments and distributing risk as well.

Time for Auto-Invest

We understand that your curiosity about investments is growing day by day on the platform. Opportunities to get into the details of manual investing are particularly attractive at first, but also challenging. Exploiting your manual investment strategy takes time to monitor the credit market and find the best opportunities for you. We don’t want to make you stop doing it – on the contrary! We want investments to be useful but also enjoyable for you. Therefore, if you have not yet tried, we recommend you to test the Auto-Invest feature of iuvo as well. Auto-Invest allows you to customize your filters as per your preferred criteria, while at the same time you have the guarantee that it will look for the best options for you. The first priority of automatic investing is to always utilize your free funds, which will significantly improve your investment performance. Add it to your investment strategy and see for yourself how efficient it is.  You can learn more about Auto-Invest  here.

Higher yield

If you feel that your yield is not sufficient and could increase, it is a good idea to revise your portfolio. Carefully review your current investments in loans, pay attention to classes, originators and annual yield you earn from them, as well as the repayment period of the selected loans.

Classes of loans give you information on the average default rate you can expect. Default occurs when a loan is no longer duly and timely repaid. Also look at different originators and choose a healthy mix that fits your investment strategy. Loans of different originators have different repayment periods. All loans with iuvo are secured by a buy back guarantee the term of which is 16, 30 or 60 days. In the event of a loan default, the buy back guarantee is activated within the specified period, and you receive your money and can invest it again. Pay attention to loans with 16 and 30-day guarantee. Last but not least, invest in a currency in which there are sufficient available loans. This is another direction in which you can diversify your portfolio.

Test our recommendations and see the differences in improving your investment efficiency. We wish you success!

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