April has a month with quite high expenses. However, I got a hefty tax return which boosted my net worth quite a bit. From a personal perspective, April was a bad month. I had to put all my focus on my education, as April and May is the exam writing period. So in April, I spend my time writing exam papers, and May will be used to prepare for the oral exams.
I wont keep you hanging, so i will just get right into this months comments and numbers!
General Comments to Portfolio and Income
April has been bad in terms of investment income. From the Grupeer episode in Marts, I stated I would be looking to rebalance my portfolio. Therefore, I sold loans from what I considered the risky loan originators on Mintos at a discount. I left about €500 to make a “Corona” strategy. The strategy is simply taking any loan above 20% yield to maturity. The loan originators selected had to have a rating of 65+ from ExplorerP2P’s rating.
Although I made this strategy which made me €8,87 with just ~€500 in the portfolio. In contrast, the last time I made ~8 was with a portfolio value of ~€950.
Furthermore, I have tried to exit Swaper and Lendermarket to only have Estateguru. I’m not certain as to how long my P2P lending portfolio will be reduced. However, in this corona economy, I don’t feel like P2P lending is a passive investment currently. I constantly have to be on top of all platforms and loan originators, which is not why I entered P2P lending. Therefore, I have continued to rebalance the portfolio value from P2P lending into individual dividend stocks.
On a positive side not, capital gains have been through the roof in April. My index funds have turned to a positive ROI again and my crypto portfolio increased by almost €1.000.
Less talk, more numbers!
Portfolio – April 2020
Total Portfolio Value:
- Portfolio value: €5.854 (+24,5%)
- Net worth: €12.297 (+39%)
- Investment income: €-20,57
- Average interest rate: +6,2%
April was a good month for capital returns. The stock market has slowly been recovering, not everything is jumping -20% per day. Some are stabilizing and some are slowly recovering. In addition, people have seemed to like crypto in the time of crisis. I did not invest anything into crypto, yet my portfolio value increased almost €1.000 from crypto alone.
In the light of the recent events in P2P lending, I decided to rebalance my portfolio and exit any platforms which might be too small to survive the corona crisis. Therefore, I started withdrawing from Swaper and Lendermarket. I have not decided whether I will reenter the different platforms. However, I will remain on both Mintos and Estateguru.
|Month||Portfolio value||Income||XIRR (interest incomes)||ROI (Capital gains)|
Saving rate and Emergency Fund
Although the expenses have been a bit higher than the last 3 months, I got a hefty tax return this month. I had made a wrong calculation in regard to how much I would earn in 2019. Therefore, paid to much in taxes and hence this big return.
This means I reached a saving rate huge savings rate although my expenses was quite high.
The current average since I started tracking my saving rate is 30%. Taking my situation into consideration I am very pleased with being able to save 30% on average. However, the average for 2020 is 61% which is even better. I hope this trend keeps going. However, realistically it will not, since I’m not in a position to get a job (I will be writing my master thesis for the rest of the year).
- Started investing: Sep-18
- Average interest rate: 7,9%
- Portfolio value: €1.153 (-34%)
- Income this month: €-30,93
My P2P lending graph looks like the stock market since the coronavirus stated. However, this is simply just the scam of two platforms, and me slowly withdrawing to keep my money safe. I’m now focusing on being on Mintos and Estateguru which I have full trust in being real.
I have to this day not lost any money on Mintos or Estateguru, other than being my own fault. This could be selling loans at a discount. Therefore, I feel safe by being on those platforms, however, the loan originators and projects still require due diligence.
The rebalancing has not meant a whole lot. Other than I feel a bit safer in relation to the P2P lending portfolio. Currently, I have my full trust in Estateguru. I’m not really doubting Mintos, however, I am doubting how well they handle the loan originators. Therefore, I have exited the most unsafe loan originators.
|Platform||Portfolio value||Interest income||XIRR|
- Started investing: Sep-18
- Average interest rate: 8,65%
- Portfolio value: €559,41 (-51%)
- Income this month: -€34,48
- Total Return: €120,61
My portfolio on Mintos was larger than I would like with the current events in P2P lending and the general economy. Therefore, I decided to reduce my portfolio to about €500. This resulted in selling loans on the secondary market at a discount.
Although I trust Mintos to do as they say, i dont trust all the loan origiantors. Therefore, i sold the loans from loan originators with poor financials.
I disabled my current strategy and made a new “corona” strategy. Although I know it’s very risky I think I might benefit from the massive panic. I selected some financial stable loan originators and tried to pick anything above 20% yield to maturity (YTM).
This strategy has been very effective as I made €8,87 from just the ~€550. The last time I made close to the same number (€8,83) my portfolio value was ~€950. In essence, I have almost doubled my return on investment this month compared with a previous similar month.
You can sign up to Mintos by clicking this link.
- Started investing: Jan-20
- Average interest rate: 7,41%
- Portfolio value: €505,16 (+0,66%)
- Income this month: €3,33 (+81%)
- Total Return: €5,16
Estateguru has been very stable. All loans which had a payment due got paid without delay. I have nothing to report on Estateguru, actually. Everything has gone super smooth.
You can sign up for EstateGuru by clicking this link. You will get a 0,5% cashback on all of your investments in the first 3 months.
- Started investing: Jan-20
- Average interest rate: 16,04%
- Portfolio value: €79,98
- Income this month: €0
- Total Return: €2,07
Lendermarket is one of the platforms I had the biggest expectations in regards to a new platform. If you have read my Lendermarket review, you know that Lendermarket is a subsidiary of CreditStar. Creditstar is issuing loans on Mintos at 10-12%. However, on Lendermarket, every loan is 12%. Hence I would prefer Lendermarket loans over Mintos Creditstar loans. However, Lendermarket has failed to pay back loans in an entire month.
I know that a lot of it has to do with coronavirus and the general economy. But they straight-up extended all loans instead of buying back the loans, even though all loans are issued with buyback guarantee. However, it seems that Lendermarket is paying back the loans with interest for the extended period.
Believe it or now, I would actually like to return to Lendermarket again when the economy gets stable. The returns is good and the customer service has been pleasant as well. So I actually like the platform, I just don’t like how they extended all loans instead of just repurchasing them by the buyback guarantee.
- Started investing: Sep-18
- Average interest rate: 11,22%
- Portfolio value: €8,35 (-82%)
- Income this month: €0,22 (-72%)
- Total Return: €11,28
Swaper has been performing as expected. I have been withdrawing when the loans have been repaid. There have been no additional extended loans than usual.
You can sign up for Swaper by clicking this link.
- Started investing: Mar-20
- Dividend Yield: 3,53%
- Portfolio value: €1.198 (+182%)
- Income this month: €0,4
I used some of the withdraws from P2P lending plus some of my cash to increase my stock portfolio. I already got dividend. I’m very interested in seening where this is headed. Although my current dividend yield is only 3,53% and not 10-12% as P2P lending, the monthly passive income will be substasy lower. However, there is the possibility of capital gains.
My current strategy is to pick stocks with stable or growing dividends. I will try to select companies with a low debt to asset ratio. In a crisis as now, assets can be sold to cover liabilities if needed.
Furthermore, I diversify among both different stocks but also different sectors.
- Started investing: Dec-17
- Average interest rate: 4,9%
- Portfolio value: €2.115 (+55%)
- Income this month: €9,96 (+9%)
- Total return in euro: €93,2
The current price jumps is exactly why I purchased crypto. They are fluctuating a lot, and apparently not linked to the stock market. Although there is some small correlations, the crypto has increased a lot more than stocks.
I have no intention of increasing my crypto portfolio since it’s big enough already.
I would recommend you to purchase crypto through Binance. They are one of the largest platforms in the world while also having a lot of Altcoins.
Want to lend out crypto for an interest in your favorite cryptocurrencies? Sign up through my link and you will get rewarded with $10 worth of Bitcoin when depositing over $200 worth of crypto.
- Started investing: Jan-19
- ROI: +2,3%
- Portfolio value: €1.388 (+20%)
- Dividend this month: €0
Month-after-month i deposit between €130-€200 to purchase S&P500 index funds. One is focused on dividend companies, and the other is just racking the index.
So far, I have gotten some small dividends and the price as continued to increase. This is progress I’m very happy about.
There isn’t much to comment on the index funds as they are meant to be 100% passive.
How Others in the Community are doing
When looking at some of the big earning bloggers, I think my current forward movement is quite satisfying. I am only motivated to see that so many are earning so much from investing.
I still hope to be on top of the list someday, but for now, I will accept being at the bottom. As long as we are moving forward, I have nothing to complain about.
Naturally, when financial global distress breaks out, people will be less interested in learning about investing. People are more focused on keeping their jobs, paying bills, and food. However, I have seen a slight growth to the blog, which I’m extremely happy about.
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Conclusion of April 2020
That was it for this month. A general bad month for the passive income, however a good one for the capital gains. Furthermore, I got the big tax return which meant a big net worth increase. However, without a job, it will slowly deplete.
I hope to see you in the next portfolio update!