Portfolio Update: May 2020

May has been a good month when looking at the previous months. From the loss of Grupeer in Marts and the selloff in risky loans on Mintos in April has made 2 consecutive months bad, income-wise. However, the tides are turning.

On the topic of Grupeer, they have released 2 statements on their site. A “crisis overcome plan” and an investor’s cabinet balance status posts. I only smell bullsh*t. Nothing has happened other than the 2 posts. I cant withdraw any money, and there is no communication as to when that will be possible. Therefore, the only reason I think Grupeer is acting as they care is to show cooperation with law enforcement and prosecutors.

It’s going to be interesting to follow where Grupeer is going. What is going to be the most interesting to see, is where investors get their money back (don’t count on it), and whether the management will be convicted in some kind of crime.

General Comments to Portfolio and Income

The portfolio has grown quite a lot this month. Crypto, index funds, stocks, and P2P lending all returned profits. While there has been no bad news in the P2P lending space (taken things into consideration), I will be withdrawing from Lendermarket. I managed to withdraw all my funds from Swaper. Therefore, I only need to exit Lendermarket to have what I think is a very conservative P2P lending portfolio.

I have put the withdrawn money from P2P lending into dividend stocks instead. I use this strategy to secure a cash flow without the risk of fraud. Although companies commit fraud (E.g., Dieselgate with Volkswagen), there is significantly less risk when investing in public companies compared to the unregulated P2P lending platforms.

The current plan for P2P lending is to have a position in Estateguru and Mintos (which I think is the safest platforms) and wait for the scams to rat out. When the scams and frauds will die down, I would like to reenter Lendermarket, BitofProperty, Swaper, and maybe some new platforms. Personally I have only had good experiences with the mentioned platforms. However, the current P2P lending environment makes it look extra risky (while it’s a high-risk investment initially).

To manage the risk being exposed to P2P lending, I’m investing in dividend stocks to maintain the monthly cash flow. Although the dividend yields is not nearly as lucrative as P2P lending, they are safer. Furthermore, I hope to invest in the stock while the market is down from Covid-19, making the capital gains more significant.

Portfolio – May 2020

May showed some nice capital gains, at almost the same rate as between Marts to April. The biggest gainer was the crypto portfolio. Currently, Celsius Network is accelerating, there are a lot of new members joining the app each month. Therefore, I will expect the Celsius Network coin to increase even more as more and more new users are joining the community.

The gains of my portfolio have managed to be greater than my expense to income ratio, hence my net worth increased even though I used more money than I earned this month.

Furthermore, I have noticed that Mintos has a lot fewer loans available on the secondary market, and the good loan originator loans are all gone. It could be a sign of one of two things. Either, the market is stabilizing and people have stopped panic selling everything. Or it could mean that there is not a lot of loans being issued.

Total Portfolio Value:

  • Portfolio value: €6.527 (+11,5%)
  • Net worth: €12.701 (+3,3%)
  • Investment income: €31,39
  • Average interest rate: 11,9%

There has not been any major portfolio movement this month. A few small withdrawal from Swaper which meant a full exit from Swaper from now. While the platform doesn’t look scammy or has sent any weird “vibes”, I don’t like the current P2P lending situation.

In some positive light, the dividend stock portfolio has returned some yet again larger dividend. I’m looking forward to seeing what the actual dividend will be when I am 100% percent done moving money from P2P lending to stocks. Although I have quite a good idea of the dividend I will receive each month, I want to see if the reality also matches the calculated dividend. For anyone interested, I’ tracking my dividend in a Google Sheet document using the template twoinvesting.com.

Portfolio value and income May 2020
Portfolio value and income May 2020

I hope the increase will keep going. However, I fear that as the different countries begin to open their borders and businesses the decease will start to spread rapidly again. If that happens, all investments will decrease at a rapid pace, just like when it first hit the western world.

Portfolio Allocation May 2020
Portfolio Allocation May 2020

The portfolio allocation also moved very minimal. I used a bit more cash this month to cover expenses. However, everything else increase in value, so the percentage cash holding decreased while the 4 investment types increased.

Saving rate and Emergency Fund

The savings rate for May was not good. My income came in at €809, with €1.022 in expenses. The main expense this month was contingent on a spare time activity.

Savings rate May 2020
Savings rate May 2020

The income will stay at this level until at least February of 2021 where I get my master’s degree.

P2P Lending

  • Started investing: Sep-18
  • Average interest rate: 11%
  • Portfolio value: €1.157,2 (+0,4%)
  • Income this month: €12,9

The P2P lending portfolio is once again growing at a slow rate. Now it’s a quest of avoiding another scam and staying away from shady loan originators.

P2P Lending portfolio value and income May 2020
P2P Lending portfolio value and income May 2020

With “only” ~€1.100 in the P2P lending portfolio I’m very pleased with a ~€13 return. Looking back at October and November where the portfolio size were the same, the return was only around ~€5-€8. Whether it’s a better investment strategy or due to my investment in cheap loans on the secondary market is unclear. However, I think it’s very pleasing.

PlatformPortfolio valueInterest incomeXIRR
Mintos565,265,8512,5%
EstateGuru509,324,169,88%
LenderMarket82,612,6339,5%
Swaper00,2434,5%
Total1157,1912,8824,1%
Income and interest received from P2P lending platforms

The P2P lending allocation shows that Swaper has been exited this month. When Lendermarket manages to repay my current investments I will wave goodby to them as well.

P2P lending portfolio allocation May 2020
P2P lending portfolio allocation May 2020

The future allocation will be approximately 50/50 between Estateguru and Mintos.

Mintos

  • Started investing: Sep-18
  • Average interest rate: 11%
  • Portfolio value: €565,26 (+1%)
  • Income this month: €5,85

Last month I was able to make about €8 in interest, however, selling what I considered poor loans resulted in a quite big loss of €34,5. However, I’m not going to be selling any more loans. The strategy has been adjusted to only include the higher tier loan originators. What I consider higher tier loan originators, is the loan originators who score +65 at ExplorerP2P’s rating.

Mintos value and income May 2020
Mintos value and income May 2020

You can sign up to Mintos by clicking this link.

EstateGuru

  • Started investing: Jan-20
  • Average interest rate: 7,41%
  • Portfolio value: €509,32 (+0,8%)
  • Income this month: €4,16

Estateguru keeps on amazing me. Despite the worldwide pandemic, they seem to keep operations as before COVID-19. While the pandemic certainly has impacted the entire investing market, Estateguru seems to be rather unaffected. To avoid giving a fake image of the platform, it seems that there is a slight increase in late payments. However, Estateguru still has a clear track record with no defaulted loans. So I will stay optimistic.

You can sign up to EstateGuru by clicking this link. You will get 0,5% additional interest in the first 3 months of investing.

LenderMarket

  • Started investing: Jan-20
  • Average interest rate: 12,8%
  • Portfolio value: €82,61 (+0,8%)
  • Income this month: €2,63

LenderMarket is a platform that I see as being fairly legit. The owners are Creditstar, which is a big lender who is also issuing loans on Mintos. However, I will be withdrawing from Lendermarket when my loans are repaid. The current P2P lending market conditions has made me put a very conservative approach to P2P lending for now.

LenderMarket value and income May 2020
LenderMarket value and income May 2020

Start investing on LenderMarket by signing up here. You will receive a bonus of 1% of the net deposited funds the first 60 days.

Swaper

  • Started investing: Sep-18
  • Average interest rate: 11,22%
  • Portfolio value: €0
  • Income this month: €0,24

Swaper has been an excellent platform. Sadly, I don’t feel like having my money will smaller platforms, which lacks general transparency. Therefore, I have withdrawn from Swaper. If the situation of frauds and scams stops, and regulation starts to roll out, I would gladly return to Swaper as I have never had any problems.

Swaper income and value May 2020
Swaper income and value May 2020

You can sign up for Swaper by clicking this link. The average return is 14%, however, there is a 2% (16% total) bonus if you invest more than €5.000.

Stock Portfolio

  • Started investing: Mar-20
  • Dividend Yield: 3,53%
  • Portfolio value: €1.436
  • Income this month: €1,98

The stock portfolio is starting to rack in some dividends. However, I would expect a couple of months to pass before I see the actual picture of monthly dividend. Since the stocks have an ex-dividend date, I might have to wait up to 4 months to receive dividend from some of the stocks.

Dividend Stock value and income May 2020
Dividend Stock value and income May 2020

I am happy about the general diversification in my portfolio. I’m targeting stable dividend stocks (with a few speculative stocks), so naturally, I will be overexposed to REITs. However, I’m avoiding oil companies and REITs that own malls. This is due to a personal belief that malls will die due to the internet. Furthermore, as I see government force environmental laws I think that oil will be forcefully replaced by alternatives. I’m not naive, so I know that malls and oil companies won’t die tomorrow, I just think the general valuation of such companies will be decreasing in the future.

Industry diversification May 2020
Industry diversification May 2020

I use Trading212 as my dividend portfolio as they charge zero fees and commissions. However, Trading212 is a smaller platform, so if you feel safer at a bigger platform, I would recommend Degiro, which is one of the biggest and best stock brokers in Europe.

Cryptocurrency Portfolio

  • Started investing: Dec-17
  • Average interest rate: 4,9%
  • Portfolio value: €2.458 (+16,2%)
  • Income this month: €9,77 (-1,9%)

Crypto had yet another month of insane growth. In just this one month i’m up another 16 percent. Furthermore, I have gained an income of ~€10 worth of crypto. With people starting to understand why printing money (to cover the stimulus check which is used in several countries) is a bad thing, the growth of crypto will be inevitable. Personally I hope sooner than later. However, it’s a new and very disruptive type of money system, so I don’t think you will be a multi-millionaire anytime soon if you invest. However, I do think you get a head start.

Crypto value and interest income - May 2020
Crypto value and interest income – May 2020

The people I have referred to Celsius Network has earned 172,22 dollars. You can also invest with Celsius Network from Europe using an Android or iPhone. You can sign up here, giving you $20 worth of crypto when depositing $200 worth of crypto and holding it for 30 days.

Celsius Network earning of referred people
Celsius Network earning of referred people

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.

If you want to earn interest in crypto, you can sign up through my link, and you will get rewarded with $20 worth of Bitcoin when depositing over $200 worth of crypto.

Index Funds

  • Started investing: Jan-19
  • ROI: 2,8%
  • Portfolio value: €1.476 (+6,4%)
  • Dividend this month: €6,76

There isn’t a lot to report in from the index funds this month. The index funds are just following the market, hence a nice increase of ~6,5% this month. However, it’s worth considering that most of those “gains” come from the monthly deposit.

Index funds value and dividend May 2020
Index funds value and dividend May 2020

How Others in the Community are doing

Clearly, I’m not the only one that is facing some difficulty with scamming P2P lending platforms. Looking at the different bloggers many have seen negative returns in the past couple of months. While this is unfortunate that a lot has been affected, it also shows the game of investing. It isn’t risk-free. Needless to say, since P2P lending is unregulated, it ‘s very risky.

I hope that everyone get a speedy recovery!

Blog Statistics

I see an impact in the visitors to my page. Since covid-19 exploded in mid-february the visitors has been at a standstill. I suspect there are several reasons for this decrease in visitor count. First of all, i havent had much time to work on my site, and secondly, when an economy is collapsing people are saving their money in bank accounts and has no interest in investing.

Site visits May 2020
Site visits May 2020

I hope the future allows for me to work more on the site.

You can start your own blog using the best host, with WordPress pre-installed. Anyone can start a blog using Siteground. Create a blog for €3,95 (regular price €9,95) and start sharing your investments or other hobbies/interests. You can use my affiliate link here.

That was all for this month. I hope you enjoyed the content, see you in the next update!

Disclaimer: This post may contain affiliate links. I may receive a commission when you, the visitor, uses an affiliate link. Investing involves risk of losses.
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ThePoorInvestor
I am ThePoorInvestor and I am on a financial independence journey. I am investing in P2P-lending to create a high cash-flow return. I disclose my income, expenses, investments, and everything financially relevant.

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