jw01
Posts: 62
Likes: 21
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Post by jw01 on Jul 18, 2018 13:21:49 GMT
I have just started with Mintos and have set up AutoInvest with their standard Diversification strategy (which qualifies me for the 1% cashback).
1 However, I see little sign of diversification. It tells me that there are 35512 loans that meet my criteria, but the last 13 loans have all been Mogo 9% car loans and 35% of my total lending is in this single sector. My average rate is 10% compared to the promised 12.5%. Is there something wrong with their algorithm?
2 My loan range is between 0.25% and 1.25% of total funds. As a matter of strategy and given the number of loans apparently available, would it be better to restrict it to 0.25%? This would potentially give me greater diversification, but would it also give me a better chance of higher rates?
I had high hopes for this platform, having come to it late, but now I'm not so sure.
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Post by zeverare on Jul 19, 2018 8:02:08 GMT
Never used the diversification strategy but here are some comments: - Mogo has received external funding so they don't need mintos as much as before so they have lowered interest rates for new loans significantly, but you can still find old ones at 13%. Check why your strategy is not picking up those. - 35% of all outstanding loans on mintos are mogo so the diversification is correct. But I agree it is too much from our point of vue.
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0risk
Member of DD Central
Posts: 217
Likes: 202
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Post by 0risk on Jul 20, 2018 13:11:42 GMT
I have just started with Mintos and have set up AutoInvest with their standard Diversification strategy (which qualifies me for the 1% cashback). 1 However, I see little sign of diversification. It tells me that there are 35512 loans that meet my criteria, but the last 13 loans have all been Mogo 9% car loans and 35% of my total lending is in this single sector. My average rate is 10% compared to the promised 12.5%. Is there something wrong with their algorithm? 2 My loan range is between 0.25% and 1.25% of total funds. As a matter of strategy and given the number of loans apparently available, would it be better to restrict it to 0.25%? This would potentially give me greater diversification, but would it also give me a better chance of higher rates? I had high hopes for this platform, having come to it late, but now I'm not so sure. Do these come with buyback guarantee? If not, then you have one more reason to spend some time and create your own autoinvest settings.
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Post by nellerdk on Jul 20, 2018 19:54:35 GMT
I have just started with Mintos and have set up AutoInvest with their standard Diversification strategy (which qualifies me for the 1% cashback). 1 However, I see little sign of diversification. It tells me that there are 35512 loans that meet my criteria, but the last 13 loans have all been Mogo 9% car loans and 35% of my total lending is in this single sector. My average rate is 10% compared to the promised 12.5%. Is there something wrong with their algorithm? 2 My loan range is between 0.25% and 1.25% of total funds. As a matter of strategy and given the number of loans apparently available, would it be better to restrict it to 0.25%? This would potentially give me greater diversification, but would it also give me a better chance of higher rates? I had high hopes for this platform, having come to it late, but now I'm not so sure.
from my experience, you need to wait a few months before the auto diversification works well...
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jw01
Posts: 62
Likes: 21
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Post by jw01 on Jul 20, 2018 22:02:16 GMT
Thanks for the helpful replies. The reason I went for the standard Diversification strategy was because of the 1% cashback (which is not a reason that normally influences my decisions). I have now set up an additional more tailored strategy but I am having difficulty depositing more money (see my Bank transfer post). I don't know if I just enter the same bank transfer details as before, since I have not seen any message that bank transfer arrangements have changed; if not, what are the sort codes of LHW and DK? Very frustrating. Edit: Problem solved. Lesson 1: hit the GBP button not EUR!
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