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Post by boxhamster on Jan 9, 2019 11:24:47 GMT
Hi, I've been testing Robocash for 3 months now. I deposited 60€ on 22.10.2018 and let it invest on autopilot since (30day loans max, 1-3€ per loan). The experience is great, but I don't seem to understand how the returns are calculated. After ~3 months my portfolio is worth: €61.04
It states an "Average interest rate" of 12.03%. €60*1.12= €67.02
What am I missing here?
Thanks.
P.S.: Oddly enough their support never got back to me on this (despite emailing them 3x now), although they got back to me within 24h before on a different matter.
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IFISAcava
Member of DD Central
Posts: 3,692
Likes: 3,018
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Post by IFISAcava on Jan 9, 2019 11:46:12 GMT
Hi, I've been testing Robocash for 3 months now. I deposited 60€ on 22.10.2018 and let it invest on autopilot since (30day loans max, 1-3€ per loan). The experience is great, but I don't seem to understand how the returns are calculated. After ~3 months my portfolio is worth: €61.04
It states an "Average interest rate" of 12.03%. €60*1.12= €67.02
What am I missing here?
Thanks.
P.S.: Oddly enough their support never got back to me on this (despite emailing them 3x now), although they got back to me within 24h before on a different matter.
It's 12% annualised I would think, possibly XIRR too to take account of drip feeding (don't know the platform). Not total return (which is obviously much less)
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Post by Ace on Jan 9, 2019 15:06:17 GMT
Hi, I've been testing Robocash for 3 months now. I deposited 60€ on 22.10.2018 and let it invest on autopilot since (30day loans max, 1-3€ per loan). The experience is great, but I don't seem to understand how the returns are calculated. After ~3 months my portfolio is worth: €61.04
It states an "Average interest rate" of 12.03%. €60*1.12= €67.02 What am I missing here? Thanks. P.S.: Oddly enough their support never got back to me on this (despite emailing them 3x now), although they got back to me within 24h before on a different matter.
Hi boxhamster , as IFISAcava said, the stated rates are annualised. So, you should expect roughly 12% if your cash is fully invested for one year. The XIRR for your investment so far is 8.37%. This is less that your expected 12% for 2 reasons: 1) cash drag, i.e. any days that part of your investment is not invested in loans that part will not be earning interest. 2) some of your interest will have accrued but not yet have been paid. Since you have only invested for a couple of months so far, the effect of accrued interest will be quite high. So, as long as you remain fully invested you will see your XIRR rise steadily over time. For info, I've been investing with Robocash for 8 months now. My XIRR is only 8.18%. This is mainly due to a much higher cash drag in the early months. My XIRR has been steadily rising recently due to a much more plentiful supply of loans. Hope this helps.
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Post by boxhamster on Jan 10, 2019 11:19:51 GMT
Thanks @ifisacava and Ace! That makes sense! I think I'll transfer some more money then. 
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