Auto investing is a feature many P2P platforms offer as part of their offering to entice investors to their sites.
Auto Invest automatically implements investors’ selected investment strategy after they have entered individual investment criteria. Once confirmed, the Auto Invest feature will begin automatically investing in suitably matched loans.
Auto Invest is a highly efficient tool for saving time spent on investing activities.
But why should investors use auto investing over manual investments?
Manual investing v auto investing
Manual investing is where investors actively manage their loan portfolios and conduct checks on all the loans they invest in.
Investor freedom permits scouring P2P websites daily and searching for loan portfolios to invest in that match their return criteria.
However, as excellent as this sounds, the majority of investors do not have hours on end to manually select which loans to invest in, let alone conduct loan research.
Hence why many investors using the Monestro platform take advantage of our Auto Invest function. Investors set up the feature and then set it aside and rest easy, knowing that their capital is continuously invested.
Advantages of Auto Invest
Multiplies your earnings more frequently
Auto Invest’s critical advantage is that it eradicates ‘cash drag’ or ‘performance drag.’
Cash drag is a variant of performance drag in a portfolio, referring to holding a portion of cash in a portfolio in cash rather than investing in growth-related investments.
Put succinctly, an investor invests their cash, earns some money from interest and returns and then cashes out the entire balance. Or the balance remains in an investor wallet, not making any additional interest.
The same with Monestro. The money you hold on the Monestro platform is only useful when you have it invested in loans.
Money sitting in your account uninvested, whilst safe, is not earning interest.
Auto Invest ensures that it is re-invested precisely according to the criteria you have selected as soon as the capital becomes available within an investors’ portfolio.
For many investors who invest manually, they may have funds available for hours, days or even weeks at a time. Every second, these funds are not invested means interest is not being earned.
With Auto Invest, you can automatically reinvest your earnings and earn even more from the compound interest earned.
Compound interest is a superb way to grow your profits. Compound interest is earned on top of a loan’s principal and accumulated interest from previous periods.
If you’re investing manually, you will miss out on this very quickly, for several reasons; most likely, you’re probably at work and unable to monitor our website continuously.
Auto Invest solves this issue.
Easily diversify and spread your portfolio risk
Monestro fervently believes in a loan diversification model for our investors. Yet, this model still requires research on investors’ part when they are investing manually.
Setting up Auto Invest ensures that your portfolio is nicely balanced and spread in terms of loan type, loan term, loan originator, and interest rate.
By investing in more loans, you’re also increasing the regularity of interest payments to your account and reducing your capital risk.
Using the Auto Invest function to re-invest these as soon as possible means creating a continuous stream of income and investment.
So, even when you are getting on with daily living, your money is making more money whilst removing the risk element. For most investors, this is what P2P investing is all about.
Time is our most precious commodity
Our valuable time is spread between work, children, hobbies, travel, relaxation, socialising, friends, and other lifestyle choices.
Continually checking the Primary Market for new investment opportunities may be fun and exciting, even a hobby.
Still, there will be times when you don’t have the time or resources to do so. Inevitably what occurs is that the money in your Monestro wallet remains dormant and uninvested.
Auto Invest ensures that your portfolio remains active and up to date.
When should I use Auto Invest?
Before you decide on using Auto Invest, ensure you are accustomed and knowledgeable with manual investing in the Primary Market.
Manual investing is principally about learning. Not necessarily about the loan portfolios per se, but becoming comfortable using investing criteria like filters, scanning loan details and examining borrower profiles.
Once you have made some earnings from your invested funds, you will understand how our platform operates.
Most of our investors naturally wish to diversify their portfolios. Not only is this highly recommended to safeguard risk to their capital, but it also provides a steady revenue stream.
Once you have reached this point, you will be ready to use our Auto Invest feature.
What happens when I run out of free funds?
As mentioned, you can have one or more Auto Invest portfolios.
They will all do the same thing – automated investing of all your available funds.
So, how does it happen?
Once our platform finds a loan that matches your criteria, it will put your pre-set investment amount into that loan. Auto Invest will continue doing so until it reaches the limits you’ve given it.
If you run out of available funds, your portfolios will begin re-investing your profit if you set this up before you began investing. By doing this, investors can investors start accumulating more compound interest.
Try auto-investing with Monestro
Auto Invest is a tool that allows investors to create an investment portfolio based on custom sets of criteria:
- loan term
- loan type
- interest rate
- investment amount
- the Loan Originator themselves
After setting up your Auto Invest criteria, the platform automatically filters according to investor criteria and invests in loans meeting those instructions.
Auto Invest allows investors to save time and ensures efficient allocation of their funds. Investors can edit, pause or resume auto investing at any time.
Why not give Auto Invest a whirl? Investors can begin from as little as €20 and can switch off at any point.