Review of Mintos strategies
Table of content
Is it safe to put money into Mintos?
Introduction
In Europe, Mintos is a platform for peer-to-peer lending. This FinTech company is headquartered in the Baltic area, notably in Latvia, like many others of its kind.
Mintos now employs more than 160 individuals in Riga, Berlin as well as Warsaw. Even though Mintos only began functioning in 2015, it has seen significant development as a result of doing many things correctly and becoming famous among financial bloggers for its simplicity and openness.
Is it safe to put money into Mintos?
The question of "how safe is Mintos?" is one frequently asked. What you know about protecting your money is as follows.
Suspensions
To ensure that loan originators are trustworthy, Mintos undertakes its due diligence and regularly monitors them. It's fairly unusual for lending firms to be stopped due to a lack of transparency in the monitoring process. Putting your faith in Mintos to keep your assets safe is a bad idea.
Scoring Credits
Various indicators such as a borrower's credit score, income, etc. are used by loan originators to analyse each application. To finance the loans that their customers take out, each lender puts up some of their own money (usually between 5 per cent and 10 per cent). Known as "Skin in the game," this assures that the loan provider is eager to recover the debt should a borrower default. Loan originators are often reviewed and updated, but their financial records are often obsolete, making it difficult for investors to consider the due diligence or credit scores.
Country Risks
Loans from developing markets with varying regulatory criteria are listed on Mintos. The loan sector in Central America, and Southeast Asia is considerably different from Europe. Before investing in the high-yielding loans given by Mintos' business partners, investors should bear country-related risks in mind. Because of the "revocation of lending licences" and the "devaluation of local currencies," which are both country-specific risks, Mintos investors have already lost money there.
Mintos Strategies
It is was one of Mintos' plans for 2020 to launch Mintos strategy. Investor feedback has been considered when developing these three investment options for those new to P2P lending.
DIVERSIFIED
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It is most comparable to the new Invest & Access techniques to use the Diversified approach to achieve maximum diversity.
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A+ through C-rated lending organisations are fully diversified in your investment. The algorithm promotes diversity.
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Buyback guarantees are incorporated in 99% of loans on Mintos.
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Each lending business is limited to a maximum exposure of 15%.
CONSERVATIVE
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This method invests in loans from the best-quality lending organisations.
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A+ to B- Mintos-rated lending institutions having a current loan portfolio that is at minimum 80% active and has a pending payment ratio of less than 10% are considered.
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The algorithm places a higher value on minimising risk.
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Loans that come with a guarantee of return.
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A maximum of 15% of your total risk can be placed on any loan firm.
HIGH-YIELD
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Lenders that use the high-yield method put their money in high-interest-rate loans.
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In loans with interest rates above 60% and a Minto's Score between A+ and C-, the system puts a premium on returns.
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Buyback-guaranteed loans
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Each lending business is limited to a maximum exposure of 15%.
Investing using Mintos ideas is completely automated. Investing is as simple as deciding how much money you want to put into it. As per the priorities of each strategy, you'll receive a diversified loan portfolio. The market automatically modifies your portfolio composition to suit your needs.
These tactics provide additional liquidity in the form of a cashout option, allowing you to get your money sooner.
Custom Strategies
Even though it's inefficient, picking thousands of loans by hand to make up your portfolio can be an excellent way to get your feet wet with a peer-to-peer loan platform for the first time. To get the most out of the platform, you can spend a certain amount and then wait a few months to see what happens. Then, after you're confident with the platform, you may set up the auto-invest plan and get started on the road to passive income!
Mintos' auto-investment criteria must be carefully chosen, as the greatest danger is that a loan originator would go bankrupt, as has happened previously.
Risk rankings for loan originators were also offered in 2018 by Mintos on the marketplace. The lowest and worst counterparty risk levels are represented by the letters "A+" and "D," respectively, in the Mintos Ratings.
Summary of the Mintos review
Rather than recommending that you put all of your funds into Mintos, my Mintos review aims to pay attention to possible risks within these autoinvest tools and consider if these strategies are the most suited for you. Other platforms such as Income Marketpalce and Peerberry allow to create your own autoinvest strategy.
Even though many investors continue to use Mintos, you must not underestimate the dangers connected with P2P lending or Mintos in particular. Be careful which loan originators are listed in the selected strategy.
