Auto-invest is a very handy tool for peer-to-peer investors. Indeed, it allows us to save time by automating the boring task of selecting loans. Moreover, it prevents mistakes.
Unfortunately, from time to time, it just doesn’t seem to work. You log in to the platform, and notice idle funds.
Don’t forget that on most platforms, auto-invest don’t run instantaneously – newcomers Afranga and Esketit look like exceptions in this regard, although their low number of investors certainly help ! -.
Your auto-invest criteria may be too restrictive
This is by far the most common reason for having idle funds in your accounts. Auto-invest configurations require indeed some maintenance in order to keep them up-to-date with current market conditions.
Your portfolio may have grown larger than your auto-invest configuration allows
A very common mistake mistake is to set the maximal portfolio size to your initial portfolio size. As a result, once your portfolio starts growing, it will be larger than the maximal size and the interests won’t be reinvested !
Interest rates may have decreased
As interest rates on most peer-to-peeer platforms vary over time, it’s likely that at some point they will decline below the threshold you set for this criterion.
Most platforms display the numbers of available loans which match your settings.
The best way to have a future-proof auto-invest configuration is to check the available loans using the manual invest’s filters.
Don't forget to reinvest !
By default, most platforms won’t reinvest. Don’t forget to select the reinvestment option when configuring auto-invest !
In addition, Robocash has several options which allow to reinvest only the principal.
How to deal with low liquidity
Increase the max amount per loan
I usually recommend to set the max amount per loan to the smallest amount possible – usually € 10 on most platforms -. However, on platforms where cash-drags are common, increasing it to € 50 or even € 100 usually help reinvesting.
I mostly use this technique on Moncera, where high-yield loans are scarce.
Loosen your criteria
On most platforms, the interest rates and durations will cover a broad range. Short-term loans with high-yield will be in high demand, while those with lower interest rates will usually be available. In addition, longer-term loans may not interest many investors – especially on platform without a secondary market such as Lendermarket.
Targeting these loans will thus help having all your funds invested
In addition, a looser configuration for your auto-invest will be more future-proof; indeed, it will be less sensitive to changes in market conditions
Platform-specific issues & solutions
It’s sometimes hard to invest automatically at BulkEstate. Indeed, the demand for loans is usually greater than the supply.
Just don’t touch your auto-invest without a good reason !
As explained by PeerBerry’s Head of Marketing and Communications, 10% of the loans supply is reserved for manual investing. It’s thus possible to see available loans, but the auto-invest may not be able to use them.
I won’t sugar-coat it : technologically, ViaInvest is a mess. Their auto-invest tool is hopelessly outdated and can’t cope with the demand.
One solution is to subscribe to BeyondP2P’s alerts on Telegram
Omaraha has a unique “bonus” feature, where you give back part of the interests in exchange for a greater priority. In my experience, setting a non-null bonus – even just 1% – will greatly increase your chances to invest.
At first, Mintos’ auto diversification seems like a handy feature. It will spread your loan between the selected lending companies, which will prevent your portfolio from being too concentrated.
However, if the auto-invest can’t respect the diversification constraints you set, it’s likely that it will stop investing.
As a result, I recommend to manage diversification manually, by creating one auto-invest per lending group.