Review after 3 month investing in Peer to Peer loans

April 21st marked 3 month anniversary since  I've been actively investing on marketplace. In today's article I will share some of my key findings on how much some can earn here with little money. 

Update: See my latest Mintos review: Review 2020 (36 Month of Investing in Peer to Peer Lending)

In short - my earnings here are very humble, with last April setting personal interest payment record at EUR 25.83. Depending on your investment strategy - that's from little to a lot. For me, this seems a decent start, and I'm looking to double monthly interest payments here by the end of the year. In general, if things (interest rates) continue to be as they are, it would ask to double my investments here.

Both individuals and entities can invest through Mintos. Individual investors must be at least 18 years old, have a bank account in the European Union or third countries currently considered to have AML/CFT systems equivalent to the EU, and have their identity successfully verified by Mintos. At the moment, US citizens or taxpayers cannot register as investors at Mintos.

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In total, during the past 3 months, from invested EUR 2,361.32 I've received in interest EUR 34.12 (after deducted currency exchange fees), statically speaking that would mean 1.44% year to date yield

I'm still building my million dollars saving account, and for 2017 I've decided to put aside $8,561, by now I've invested about 42% from that, and about $2,500 I've invested on Mintos (in several batches). Just recently I've started to build up my dividend stock portfolio, and I've invested some money in Baltic higher dividends paying stocks. Also some little money I've put in mutual funds, again in Baltics and Eastern Europe.

Investment portfolio April 2017

Investment portfolio April 2017

Mintos makes 69.2% from my total investment portfolio, followed by stocks in Nasdaq Baltics (25%) and mutual funds (5.8%)

As you can see by now Mintos makes the biggest part from my investment strategy, though for following months this year, I'm looking to increase investments in stocks and mutual funds. I would be happy ending this year with peer to peer lending contributing to my portfolio not more than 60%. In fact, as I believe, investments in peer to peer lending shouldn't be more than 20% from total portfolio. .As I'm just starting out right now, I feel I can afford greater risk (and hopefully greater interest)

My investment strategy on

I continue to invest in loans only with a buy back guarantee, which means, in case if loans go past due, loan originator would buy back bad loans, helping investors to avoid losing money. I tend to invest in shorter term (up to 3 month ) loans in Georgia, but have invested in long term (72 month) loans in Baltics and Poland also.

In April I had following currency portfolio: 849.79 EUR and 4,262.84 GEL, which is a great increase if compared my investment after first month here, as said I've deposited more money in several batches on Mintos. As I'm depositing money from Georgia based bank account in Georgian lari, I need to exchange money directly on platform, paying commission fee. I try to limit my currency exchange fees on platform to 10% from interest received.  In currency exchange fees I've paid GEL 19.55 , which equals to about EUR 7.34

Investments in Georgian lari

Investments in Georgian lari gives 17% interest rate with buy back guarantee, by now most of the earnings come from Georgian lari. In total I've got 77.86 lari in interest, what equals to about EUR 29.23

Investments in GEL (as on April 30, 2017)

Investments in GEL (as on April 30, 2017)

Net annual return have increased to 15.06% as most of the loans in Georgian lari are set at 17% annually, which is a decent, due to the Georgian lari volatility against EUR and USD currencies, greater interest comes with a greater volatility, and thus it might be tempting to invest in Georgian lari only, I try to exchange Lari to EUR (allocating 10% from total interest received). Also, as I don't think such high interest rates will continue for long, I've started to invest in longer than 30 day short term loans, investing in up to 2 year loans in GEL trying to keep higher interest rate longer.

Investments in EUR

During the past 3 month I've received in interest EUR 12.68, which doesn't seems a lot right now, but on the other hand, total investment in EUR currency is relatively small.

Investments in EUR (as on April 30, 2017)

Investments in EUR (as on April 30, 2017)

I plan to increase my investments in EUR currency slowly, it would be good to see about EUR 1,200 invested after another 3 month here. Which might generate about EUR 10 monthly, with interest rates as they are now. 

Again, I'm investing in buyback loans only, to push my interest rates higher I invest heavily in long term loans, including more than 72 month.