October Portfolio Report: €21,819.92
Hello hello, fellow investors! It’s time for another monthly update, and this one is quite an exciting one – somehow, I’ve managed to get my crowd lending and stocks portfolio past €20k!
I also made more than €100 from all my investments for the first time this month, and my blog income stayed consistently good, which is great.
October was also fantastic in my personal life, because me and my partner celebrated out two year anniversary, his birthday, and on 2nd November, my birthday! So many celebrations in such little time 🙂
However, I know that you’re here to read about my investments and news in the P2P investing world, so let’s get into that!
Big Trouble For Mintos? + Other News In Crowd Lending
On October 17th, EstateGuru announced that they now have a secondary market. This is great for anyone who is hesitant to invest on platforms where your money can be tied up for years. Now, you also have the option to liquidate your funds on EstateGuru whenever you want! (You can get a 0,5% cashback bonus on all your investments for the first 90 days with my partner link!)
However on Mintos, things are not looking as great. There’s a couple of loan originators that have recently been in trouble, such as Aforti Finance and Rapido Finance. And by trouble I mean on the verge of defaulting.
Mintos has already issued a notice in the case of Rapido defaulting (read more about it here). All Rapido loans have now been suspended on the platform, because they stopped sending payments to Mintos.
In the case of Aforti, Mintos orginally suspended their loans on the primary and secondary market on August 7th, and are now answering investor questions about the situation and trying to work out a payment plan with the loan originator. You can read more about the situation here and here, and I recommend checking especially the comments.
And that’s not all – another loan originator (Metrokredit) has stopped issuing new loans to Mintos investors and they have also been excluded from the State Register of the Microfinance Organizations of the Russian Federation. Some investors speculate that this means that this loan originator will default too.
It looks like its highly likely that all three of these will default and if you currently have any stakes with one of the loan originators, I recommend selling the loans on the secondary market if you can. I had about €80 invested with Metrokredit and liquidated €50 so far on the secondary market with a discount of -2%. Better be safe than sorry, but if you like risk (and potentially higher rewards than before), you can also retain your funds with Metrokredit.
Loan originators defaulting is a very real thing, and this is why it’s very important to diversify across different LO’s. However, 3 loan originators going bust on Mintos this close to one another is quite worrying. I’ll keep my eyes on the Mintos blog and perhaps re-evaluate how much I keep on the platform.
With all of this said, Mintos is also currently working on a few different features to its platform, for example Pending Payments. This, according to Mintos is a new “status functionality that will provide investors with clarity over the status of borrowers’ payments in the funnel from loan originators to the Mintos marketplace.”
They are also introducing a schedule extension feature, which will improve transparency when lending. So what is it?
Loan originators often offer repayment extensions to loan borrowers if they are unable to make full payments. Previously, this wasn’t reflected on Mintos. According to them, every time a borrower asked for an extension, the lending company repurchased the loan from Mintos investors, and then placed it back with the extended schedule as a new loan.
Now, they will be introducing an extension feature, which will allow loans to be extended for up to 31 days. This will not apply to all loans, so you can filter loans based on whether or not you want them. They can also be sold on the secondary market like regular loans.
Now, with these news out of the way, let’s have a look at how my portfolio performed in October!
Total (P2P only):
€128.21 (+ €32.22)
€21,819.92 (+ €4,500)
Notes: The yield I’m calculating is month on month.
I don’t calculate the yield or income of stocks because their value changes so much month on month – I’m planning to review them annually.
Portfolio Performance: Historical View
The income from my P2P portfolio was €128.21 this month, which is +€32.22 higher than last month. This month the returns jumped – probably because I’ve kept putting new funds into my accounts over the last few months, and the interest is being paid now.
My crowd lending and stocks portfolio has grown to €21,819.92, which is +€4,500 higher than last month. That’s a lot for me to put aside in a month, but £1,000 of it actually came from the government. In the UK you can invest up to £4k per year into a lifetime ISA and when you do, the government gives you 25% of what you invested, all tax free. That’s a pretty sweet deal! (The downside of this is that I won’t be able to touch the money until I’m 60 years old.)
I put about £3k into a hedged S&P 500 tracker fund (iShares V plc (IGUS)), which hedges the currency risk between GBP and USD when investing into S&P500. I also put €300 into CrowdEstate and €400 into Kuetzal.
This month was another good month for me on Envestio! I earned €23.26 and I’ve re-invested the idle money that I had on my account back into the recent projects that they have on the platform. All of my loans have been paid in time and I’m happy with the 16% or so that I’m getting on the platform.
In the past few months, Envestio has also added a lot of large projects to the platform, which is a plus. Here’s a snapshot of their current active loans:
You can read more about them on Envestio’s site here.
If you don’t have an account on Envestio yet, you can sign up through my partner link and get €5 + 0,5% cashback bonus on all your investments for the first 270 days. (You will only get this bonus through my link, not on the Envestio website!)
This month, my income is back at a regular level on Mintos. I earned €35.47, which is average for my account. After reading the news about the troubles that Mintos is having (the ones I mentioned earlier in this post), I’m going to start keeping a closer eye on my portfolio and reading the Mintos blog more actively to see if there’s any cause for concern.
Luckily, I didn’t have any investments with Rapido or Aforti (that are on the verge of defaulting), but I did have about €80 invested in Metrokredit loans. I managed to liquidate €50 of it so far on the secondary market with a discount of -2%, so my personal losses will not be that great if the loan originator defaults. However, I’m keeping my fingers crossed that they don’t default for everyone else involved!
If you don’t have an account on Mintos yet, you can sign up through my partner link and get 1% cashback bonus on all your investments for the first 90 days. (You will only get this bonus through my link, not on the Mintos website!)
To read a more detailed Mintos review and a full recap of my historical returns on the platform, head over to my Mintos review here.
The income from Grupeer was €16.78 this month, which will probably be around where it stays for the foreseeable future, as it’s around 13% yield for my portfolio.
So far, all the loans that I’ve invested in on Grupeer have been paid on time and it’s very passive, much like RoboCash. I only login 1-2 times a month to see how my portfolio is performing and if there are any funds that need to be reinvested. The returns are great at 13% as well, and you can diversify your portfolio to include different loan originators and even invest in development projects.
This month, I earned €17.81 on RoboCash, which is a lot higher than what I normally get on a monthly basis. To be honest with you, I’m not a 100% sure why the income jumped this high, but I assume that some outstanding loans were paid to my account. After all, the interest rate for this month is 13.6%, which is not that much higher from the expected 12%.
RoboCash is one of my most passive platforms and I rarely check in to do any changes on the account. If you’re looking for a hands-off investment platform, this one is worth checking out.
EstateGuru keeps surprising me these past few months. This month, I earned €23.18 from my investments, which is double that of last month’s! A few projects returned my principal ahead of time too, which is fantastic.
The loans offered on EstateGuru are paid quarterly, bi-annually or as a balloon loans, which is why the income per month has been low compared to other platforms. However, it seems like now the interest is starting to get paid out on a more consistent schedule, as I’ve invested into more and more loans.
EstateGuru deals with real estate loans, so if you want to diversify your crowd lending portfolio a bit, this could be a good option.
I deposited €1,000 in total to CrowdEstor over the past month and after several weeks, I managed to invest all of it into 15 different projects. My current expected rate of return is 15.45%. In the last month, I earned €8.87, which corresponds to roughly 10.6%.
Some of the projects that I invested in are paid on a monthly basis, whereas others are paid on a quarterly basis. That’s why I’m expecting to see some fluctuations in the income on a month-to-month basis. I’m also expecting the income to grow to at least €12.5 per month on average.
So far, my experience on CrowdEstor has been very positive. The platform is very user friendly, there are lots of high-yielding projects to choose from AND the user interface is fantastic.
What I like most about CrowdEstor is that you know exactly when a new project is launched on the platform thanks to their count down timers:
This makes it easier to plan your investments. And even when there are no investments available, you’ll know when to expect one.
I brought my exposure on Kuetzal to €500 in the past few weeks, and so far I’ve received €2.84 in income and bonuses. All of the projects will pay interest monthly, which will be easy for analysis. Two of the projects that I invested in a few days ago start paying interest in December, so I won’t see the full effect of income until then.
So far, my experience with Kuetzal is quite neutral. I know that a lot of other personal finance bloggers have been raving about the platform, but personally, I find that there are a little too few loans on the platform to get excited about.
I like to invest a maximum of €50-€100 per loan on crowd lending platforms, so it can take a long time for me to invest the overall amount that I want. For example, I want to bring my overall portfolio value on Kuetzal to €1,000, but it’s probably going to take a few months to do that because of to the lack of loans.
One positive that I will say about Kuetzal is that they offer a buyback guarantee on about half of their loans, which brings additional peace of mind. (These are the only loans that I’m investing in on this platform.)
I currently have €400 invested in CrowdEstate, and even though the money is invested across 3 projects, I won’t be seeing any interest until December. I accidentally also invested into one full-bullet type real estate loan, which means that I won’t see any interest or principal until the project is finished. I’m not a fan of this type of loan, so I’ll try to stay clear of them in the future.
My blog income has remained pretty consistent from last month, which is exciting! This month, I made €102.44, which is almost as much as what I made from interest on P2P platforms. That’s pretty cool!
If you want to start a blog and track your investments and savings too, head over to my step-by-step tutorial on How To Start A Personal Finance Blog!
If you’re interested in learning in more detail about how to make money blogging, you can check out my income reports on my second blog, The Chic Pursuit, where I do monthly deep dives about how to make money as a blogger.
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