I’ve invested over €150,000 in this platform, and I wrote a detailed review of the overall experience for you on this blog, so if you haven’t checked that out yet, now is the time to do so.
In this post, I want to talk to you about a new product Mintos launched in 2019, called Invest & Access.
Why Invest & Access?
I love Mintos because it aggregates many loan originators and thousands of loans, so you can easily diversify and spread the risk. I am making more than 11% returns on an annual basis over my investments, so I’m very happy so far after 2 years of investing.
The only real issue that was preventing me and other investors from investing more money into the platform is the question of liquidity. As investors, we always tend to favor investments that are highly liquid. This is especially true when you have limited capital to play around with, which happens to be the case with younger generations who are still getting their foothold in the financial ladder.
So the question that Mintos Invest & Access sets out to answer is this:
How easily can I convert an investment to cash?
In the past, investors often had to make a tradeoff between earning high returns, or having high liquidity.
Mintos Invest & Access combines the best of both worlds. It’s a fully automated way of investing whereby you select the amount you want to invest and that amount is then automatically diversified across loans in the marketplace. So far so good, but what’s special about that?
The answer is that you can pull out the money in your investment at any point in time, solving the liquidity problem. There are no questions asked, and no extra cost.
The minimum investment is 500 EUR and the maximum is 200,000 EUR. I recommend at least 2,000 EUR to ensure proper diversification and a good rate of return.
Lending companies become eligible for Invest & Access one month after joining Mintos.
The obvious question then, is what happens when you want to sell your investments? Who will buy them? The answer is that other investors will pick up your loans via the secondary market, although this is all transparent to you when you are using Invest & Access.
Essentially, Mintos is just making things easier that were already possible with Auto Invest and manual intervention.
Keep in mind that if there low demand on the secondary market, it might take longer to sell your investments. So far so good, however, as there is a very high level of liquidity in the secondary market. Whenever I tried selling loans to test it out I found buyers the very same day, so I’m not too worried about that aspect of the system thus far.
Invest & Access only invests in loans with a rating of A+ to C- and buyback guarantee. In addition, it only buys loans from lending companies that have been on the marketplace for at least 6 months, further enhancing the safety of your investment. To give you the best diversification for additional protection and stable returns, Invest & Access rebalances your portfolio daily.
I’ve invested €25,000 in Invest & Access to try it out, while most of my portfolio is still using the Auto Invest strategies I had set up in previous months and years. So far there have been no problems using this new investing system from Mintos, and I will continue shifting some of my portfolio into it as I grow more confident in how it works under the hood.
I’ve also tried withdrawing the money just to test it out, and it was all withdrawn within 24 hours without any problem. Note that you can only take out of Invest & Access the money that is invested in current loans and not those that are delayed.
From my experience, this works out to around 60-70% of your Invest & Access portfolio that would be available for cashing out. For the rest you’ll have to wait a bit more until the loans become current or are bought back by the loan originators, freeing up the money for you to withdraw.
Feedback from Mintos
I’ve gotten some feedback from the guys at Mintos about how Invest & Access has been doing in the months since it launched. Here’s what they told me.
Since Invest & Access was launched, 69% of new investors on Mintos have used this tool to create their investment portfolios on Mintos. 18% of new investors choose Invest & Access exclusively for their investment activities on Mintos. While having access to their money, investors are earning average interest rate of 12.09% on their average investment of EUR 3 969. Only in the first two months, already 49% of investors have added more funds to their Invest & Access portfolios after the initial investment.
That’s a very strong response from investors and I’m happy to hear that many other investors have been trying out this system. Mintos have proven to be very good at listening to our feedback as well and they will be introducing some notable improvements.
One of them is the “Pause” option. Investors can now use their Invest & Access earnings with more control and flexibility. By investing the earnings of Invest & Access via Auto Invest or Manual Invest, investors can further diversify their investment portfolios within Mintos.
Pausing Invest & Access means pausing the reinvesting, without cashing out. Most importantly, the remaining investment in the paused portfolio still continues to earn interest. This way, although it remains a highly automated investment feature, Invest & Access offers investors more control over their incoming earnings and additional time for investment decision making.
An upcoming feature will be the lowering of the minimum investment amount.
Instead of EUR 500, the minimum starting amount for investment with Invest & Access will be EUR 10.
This way, investors will be able to experience the Invest & Access tool before they opt in to invest more money via this Mintos feature. Investors can always add more funds to their portfolio, gaining even better diversification over loans and loan originators. So far, the average number of loans across which Invest & Access diversifies investors’ portfolios is 203 loans.
Besides these changes, in the future, Mintos plans to bring more insights into the investors’ monthly earnings made possible by Invest & Access.
Criticism of Invest and Access
Some investors have shared their worries about Invest and Access lowering the overall returns on the Mintos platform since having been introduced.
I discussed this potential downside with the management of Mintos, and according to what they told me there is no connection.
The introduction of Invest and Access seems to have coincided with a time when demand was much higher than supply on the platform and that caused the rates to go down. Now supply has risen again, so we are seeing higher rates.
It’s worth mentioning again that Mintos is not a loan originator and they don’t control the rates offered. Rates are controlled by the supply and demand on the platform.
The Invest and Access system does not discriminate between loans of different interest rates. The main aim for it is to diversify between loan originators and it invests in any loans available.
In conclusion, for now, I’d say the worry is unfounded and I remain very enthusiastic about the Invest and Access system.
One thing to note is that as an investor, you have no control over how much you invest in each loan. It’s all left in the hands of the algorithm, and we don’t know exactly how that works. For example, I typically invest €10-15 in each loan when using Auto Invest, but under Invest & Access i was automatically invested in some loans at much higher amounts, like €100-150 in one loan.
What is known for sure is that the investment in one loan depends on the total size of the Invest & Access portfolio. The higher it is, bigger is an investment in one loan, which is quite logical. Higher investments in single loans does not necessarily mean you’re incurring more risk, as there are many factors that determine risk, but it’s something to keep in mind.
Have you tried out Invest & Access? What do you think of it?