thanks for reading.
It’s been fun and educating to keep track of my investments in p2p lending for the past 6 months. I feel I learned a lot this year from this.
My p2p lending portfolio over the past 6 months
My p2p lending portfolio is growing steadily. Its growth is still mainly fueled by new deposits instead of earnings (roughly 400 EUR deposits vs 200 EUR earnings), but this is still my first year of investing in p2p loans. Out of my entire portfolio, the earnings amount for only 6.4%.
This is how my portfolio evolved over the past six months:
I’ve redistributed most of those funds on other platforms in March.
The current state of affairs
|Platform||Invested capital||Current value||Profit||Interest Rate/Annual return||Started Investing|
|Fast Invest||4010||4394 (+49)||384 (+49)||13.65% / 14.12%||August 2018|
|Mintos||3494||3878 (+48)||384 (+44)||13.51% / 10.98%||June 2018|
|Viventor||1003||1033 (+8)||30 (+8)||14% / 14.71%||December 2018|
|NEO Finance||970||894 (+7)||-74 (+7)||17.28% / 11.79%||November 2018|
|PeerBerry||646 (-24)||777 (-16)||132 (+8)||12.21% / 12.13%||December 2018|
|EstateGuru||1371 (+129)||1455(+138)||84 (+9)||10.97% / 11.07%||August 2018|
|Grupeer||980||1068 (+12)||88 (+12)||13.73% / ??||December 2018|
|Crowdestate||986||1008 (+5)||22 (+5)||12.7% / 12.98%||December 2018|
|Envestio||806 (-69)||900 (-56)||94 (+13)||18.26% / ??||November 2018|
|Crowdestor||586||618 (+7)||32 (+7)||16.58% / ??||December 2018|
|Abundance||150 (+50) (GBP)||150 (+50)||0||9% / ??||January 2019|
|Bulkestate||100||100||0||12% / ??||December 2018|
|Robocash||500||510 (+5)||10 (+5)||12% / ??||April 2019|
|DoFinance||150||153 (+1)||3 (+1)||10.33% / ??||April 2019|
|Swaper||100||101 (+1)||1 (+1)||12% / 9.13%||April 2019|
|Bondster||50||51 (+1)||1 (+1)||12.55% / ??||May 2019|
|ViaInvest||100||100||0||11% / 11.55%||May 2019|
|Debitum Network||150||152 (+2)||2 (+2)||10.46% / ??||April 2019|
|Assetz Capital||100 (GBP)||101||1||5.88% / ??||April 2019|
|Flender||295 (+45)||296 (+46)||1 (+1)||?? / 10.1%||May 2019|
|Kuetzal||400||405 (+5)||5 (+5)||19.12% / ??||May 2019|
|TFG Crowd||600 (+200)||603 (+203)||3 (+3)||16.66% / ??||May 2019|
|Monethera||145 (+145)||150 (+150)||5 (+5)||18.4% / ??||June 2019|
|Total||17692 (+476)||18897 (+657)||1209(+186)|
Legend: the number in parentheses represent changes since last month (new deposits, portfolio increase, month earnings).
The biggest thing that happened on Mintos this month was the release of the Invest & Access portfolio. I’ve set up the minimum recommended amount to create this portfolio (500 EUR) and it got filled up in only a week.
While it doesn’t add anything that you couldn’t do before with auto-invest, it’s a step forward in the direction of fully automating your investment experience on Mintos.
For investors that want their time spent on Mintos as short as possible, it’s a great product. Set the portfolio size, maybe change it later, and Mintos diversifies your portfolio across multiple lenders. With one click of a button, you can exit your investments and withdraw all or part of your funds when you need them.
Of course, for this advantage of commodity, it has its minuses. You can’t pick and choose the loan originators in your portfolio. You can’t choose a minimum interest rate for the loans you invest in. My overall portfolio has an average interest rate of 13.51%, with loan originators I’ve chosen carefully, while the Invest & Access portfolio has an average interest rate of only 11.94%, with some loan originators I consider too risky to invest in.
But since this is a new toy to play with, I’ll leave the Invest & Access portfolio to run a few months and see how it performs.
My total earnings for this month on Mintos amounted to 44 EUR, which is about 1.14% of my portfolio (or 13.77% annual return). Not bad.
Nothing new happened on Fast Invest this month. And this is not a bad thing. My earnings in June were similar to the ones in the previous months. I’ve earned 49 EUR from my portfolio here, which means 1.12% gain for this month (or a 53% annual return).
Viventor says I should expect a 14.73% annual return. It’s hard to know yet, as a good part of the loans I’ve invested in don’t pay monthly interest. Also, 30% of my loans are late with their payments, and this also adds to a lower return.
Based on my June’s earnings of 8 EUR, my annual return would be 9.36%, a lot lower than the optimistic prediction Viventor makes.
My PeerBerry portfolio brought me 8 EUR this month, a 1% increase over last month. The platform has its minuses, like a missing secondary market or a way to sell back your investments, but the returns are constant.
I’m only invested in long-term consumer loans, as I didn’t like PeerBerry’s approach to selling short-term loans to its investors. Most of the short-term loans were late 2 months before making payments. While they did pay interest for the late period, I needed a platform where I could liquidate my funds fast whenever I wanted.
And this is how I arrived at Robocash.
Robocash, doFinance, ViaInvest, Swaper and Bondster
I’ve included in this group all the platforms that have payday loans as their main selling product. Regardless of how they’re packed.
Robocash and doFinance don’t let you see the loans you invest in, ViaInvest and Swaper let you see them (but on Swaper they’re never any loans available to manually invest in) and Bondster has some other loan types as well, but the majority of the loans offered are still payday loans.
My payday loans portfolio on these platforms is worth 915 EUR, adding 8 EUR since last month, a 0.88% monthly increase.
I’m thinking of removing my funds from these platforms except Robocash. Payday loans are not my favourite thing, and these platforms are not even fun to be on.
While my portfolio here isn’t worth mentioning (150 EUR), Debitum Network is an interesting platform to follow. They’re actively working on the website and this month they released a new version of it, much lighter and simpler.
The number of investors grows at about 100 users per month, still slow. It doesn’t help the average interest rates are around 10% while other platforms advertise 12% to 15%, or even more.
I’ve invested in 3 more loans this month on EstateGuru. It was time to add back some of the earnings from this platform.
The platform is also planning to add a secondary market this summer, which would make EstateGuru an even safer platform to invest in.
According to the platform, I should expect a 10.52% annual return. Not bad, but a bit lower than the returns advertised on other platforms. I’m willing to get lower returns in exchange for stability.
Crowdestate just announced that one of the development projects I’ve invested in, Tammelehe 6, is extending the loan term by 4 months. Like any typical real-estate development project, it’s not finished in time.
The principal payment for Global North Timber has been delayed now for more than a month.
I’ve only received 5 EUR in interest from Crowdestate this month (or a 0.5% return) but according to the payment schedule in July I should receive more than 20 EUR in interest, more than making up for this month’s low returns.
Next month I should receive my first earnings from Bulkestate. I’m thinking it’s time to add more funds to the platform. Bulkestate has some interesting renovation projects that I don’t usually find on other platforms.
All payments on time here. Starting October some of the projects I’ve invested in should reach maturity. It would be interesting to see how many of them will pay on time.
Envestio, TFG Crowd, Kuetzal, Monethera
Since there were no new projects on Envestio in the last few months or at least no project I was fast enough to invest, I’ve looked for other platforms.
I’ve added 200 EUR more on TFG Crowd and I’m planning to add at least 100 EUR more in July. I’ve also 2 interest payments on 2 of the projects I’ve invested in.
Kuetzal behaves in the same way as Envestio when it comes to interest payments. I see the payments schedule on my account, and they all happen when they’re supposed to.
There was some noise on a few Facebook groups this month about Monethera (I assume mainly because they have an affiliate program), and I decided to give it a try. It’s a new platform, with lots of things missing like important project details, that makes investing riskier than it should. I consider the funds added play money. I’ve added some notes about Monethera here if you’re interested to find out more about it.
Neo Finance just got listed on the Nasdaq Baltics exchange. What it means to me as a p2p investor is that they’re legally required to publish their financial statements at least yearly (although they were doing this already in the past years). This means I can see if the company is doing good or bad and I have a better idea if my investments are safe or not.
Abundance, Assetz Capital
I’ve added 50 EUR more on Abundance, raising my UK p2p lending portfolio to the fabulous sum of 251 GBP.
I like the simplicity of Flender and I feel bad I didn’t take full advantage of the 5% cashback they offered for the first month of investment.
While the returns are lower than what Envestio/Kuetzal/TFG Crowd/Monethera offer, Ireland is a totally different market from the Baltics. Lower risk also comes with lower returns.
The best part about Flender is that they let me fund my account through my bank card, so there’s no waiting for my funds to reach my account.
In the past few months, Grupeer had all sorts of cash-back offers from all the new loan originators that joined the platform.
My returns from Grupeer are great (1.13% this month), and I’m thinking to add more funds here. That is, once I return to work and have a constant income, starting September.
Summary for June
My total return this month is 1.02% of my portfolio.
To put this into perspective, this is twice the annual interest my bank would offer me to keep those funds in a savings account. It’s also less than the variations of nearly any stock in the S&P 500.
Overall, I’m happy with my returns from p2p lending. Slow and steady.
Other things that happened to my life in June:
- hiked in Grand Canyon and Yosemite
- won 10 USD in Vegas (and lost some more)
- visited San Francisco and Vancouver
- started smoking again (and planning to quit again in a few days)
- read 5 books
- asked my girlfriend to marry me
See you next month.