Update: This article clearly needs to be re-written in light of recent events regarding Envestio and Grupeer.
If I was starting all over again today and decided to invest 10.000€ via P2P lending, how would I split my funds among the available platforms? What would my peer to peer lending portfolio look like in Mid 2019 and why?
I’ve been asked these questions recently and I think they make for a valuable thought experiment. Before I share my answers, you should know that all of this is just my personal opinion and what I would do based on my experience so far.
Alright, let’s get right into it!
How I would spread 10.000€ among P2P platforms today
Why 40% Mintos?
Mintos is one of the largest, most-respected P2P platforms in Europe. Since launching in 2015, 142.000 investors funded over 2,4 billion Euros worth of loans on the platform, which makes Mintos by far the biggest player on this list.
I love that Mintos allows me to diversify a lot within a single platform. There is an enormous number of available loans with a buyback guarantee, offered by 61 loan originators in 29 countries.
The auto-invest is very reliable and has always kept me fully invested since I started investing on Mintos in October last year. In addition, interest rates have been increasing over the past couple of months, with many buyback loans now offering up to 15,1% interest per year.
For all of these reasons, I’ve recently made Mintos the largest position in my own P2P lending portfolio as well. More on that in a couple of days in my next monthly update! I mostly invest in personal loans (short- and long-term) and car loans on Mintos.
Why 25% Iuvo Group?
Iuvo Group was launched in August 2016. Since then, over 60,7 million Euros worth of loans were funded by 11.737 investors.
I’ve been very satisfied with my investment on Iuvo Group since October 2o18, which is why for me personally, they deserve to be on this list.
I love that there is no lack of available high interest paying loans (14,88-15,06% p.a.) with a buyback guarantee. The auto-invest has never let me down so far and always reliably reinvests the interest and principal payments I receive.
Not only that, but they offer one of the best currently available investment bonuses in the P2P lending space.
After receiving a referral (which I’ll gladly send you via this form) and signing up through the link in the mail, Iuvo Group adds an extra 30€ to your account on a 1.000€ investment or 90€ when you invest a total of 2.500€ (like in this example). That’s a very nice 3-3,6% Bonus on your investment! Don’t forget, this only works if you receive a referral.
I mostly use Iuvo Group to invest in personal loans (and a few business loans by KFP), as those currently offer the most attractive returns.
If you want to learn more about Iuvo Group, my experience and see my auto-invest settings, feel free to check out my written review and my YouTube video.
Why 12,5% Envestio?
Read this first: Important Update on Envestio (January 2020)
Envestio started as a private investment fund in 2014 and went public in the end of 2017. Ever since then, 6.923 investors funded over 18,4 million Euros worth of loans on the platform.
They are by far my best performing crowdlending investment so far, as they offer some of the highest interest rates (16-21% per year) in the peer to peer lending space. Most of my investments on Envestio are business loans, with the occasional real estate project sprinkled in.
I like that all the loans come with a buyback guarantee. So far, I received all interest and principal payments on time, I hope it stays that way in the future as well!
The only downside right now is that all the loan opportunities are funded within a very short amount of time, so you need to act quickly when they send out an e-mail about new loans on the platform. I’ve been able to stay fully invested most of the time by doing just that. You can read more about my experience in my Envestio review or watch my video.
Before we move on, I want to mention that I’m putting Envestio and Crowdestor in a similar category, even though there are some differences between the two.
What this means is that I would personally be fine splitting 25% of 10.000€ (2.500€) between the two depending on loan availability. If there are no loans available on Envestio for a while I would put more into Crowdestor and vice versa.
Why 12,5% Crowdestor?
Crowdestor was founded in 2018 and is thus the youngest platform on this list. So far, over 5,5 million Euros were invested on the platform. Like Envestio, they also offer high-yielding business and real estate loans with interest rates up to 21% per year.
Crowdestor is the only one in this portfolio that doesn’t offer a typical buyback guarantee. However, they do offer a buyback fund that’s supposed to serve a similar purpose like a buyback guarantee in case a loan defaults (which hasn’t happened yet).
I really like Crowdestor‘s transparency, you can even see the amount that’s currently in the buyback fund as well as a lot more details about each loan. Crowdestor offers a lot of interesting investment opportunities with high interest rates and is thus, in my opinion, an ideal alternative to Envestio when no loans are available there.
Why 10% Grupeer?
Read this first: Important Update on Grupeer
Grupeer was launched in 2016. Since then, 10.524 investors funded over 41,9 million Euros worth of loans.
Most of the loans on the platform are business and project development loans (real estate). Grupeer currently offers loans from 26 loan originators in 14 countries.
I like that there is no shortage of high-interest paying loans (13% and sometimes above) and that all the loans come with a buyback guarantee by the loan originator. I also always received interest as well as principal payments on time so far.
Grupeer also offers 1% Cashback on some of the loans on their platform, which can further boost your returns. Use the filter under Loan deals on Grupeer to Show only deals with CashBack to find them.
The auto-invest still has some room for improvement, but you can read about that in more detail in my review.
Either way, for me personally, Grupeer deserves to be on this list as a way to diversify into more business and real estate loans.
There you have it, that’s how I would split a 10.000€ investment in P2P lending if I was starting all over today. In my opinion, by allocating our investment this way, we would be able to obtain a decent level of diversification among different platforms, countries and loan types.
Approximately 65% of the investment would be in consumer loans (and some car loans), while 35% would be in business and real-estate backed loans.
At the same time, we’re still aiming for high interest rates, enjoying a 90€ Bonus on the investment and not making the whole thing overly complicated, by limiting ourselves to 5 platforms for now.
How would other bloggers invest their money in P2P lending?
If you’re curious about how 14 other bloggers in the space would invest 10.000€ in peer to peer lending today, Marius interviewed them and recently published a great article about it. He was so kind to feature me as well!
How to Invest 10.000 EUR in P2P? 15 Bloggers Reveal Their Best Ways!
What do you think? What would be your allocation if you were starting again right now?
Video of the article
- My Investment Tools
A list containing all my investments in P2P Lending, the brokerage accounts I use to buy ETFs, my speculative investments in Bitcoin and my free bank accounts. It even includes the tools I use for blogging and YouTube.
- P2P Bonus Offers
A collection of all the best, currently available bonus and cashback offers in the P2P lending space. Regularly updated.
Disclaimer: Investing involves risks of losses. You should always do your own research before investing into anything. Also, some of the links are affiliate links, which help support me, the website & YouTube channel. I only link to services I use myself, none of them are sponsored.
Hi Angelo, I have been using Mintos for a while and I am interested in calculating my actual IRR. Is there a way to see this in my Mintos account or is there a way to calculate it. I spent a few hours in Excel today but I am struggling to get the IRR %. Mainly because I made a lot of deposits on differents dates and also with different amounts.
This free program helps a ton: https://www.portfolio-performance.info/portfolio/
And don’t worry, it’s in English once you download it. I just add my deposits/withdrawals as well as the interest I received once per month and it does the rest.
Have you looked into peerberry?
Bernhard, who I interviewed several times, is quite happy with them, but I haven’t looked into them myself yet.