Navigating the world of investments can feel like a thrilling adventure or a daunting challenge, depending on how prepared you are. At Mintos, we strive to make this journey as smooth and rewarding as possible by offering a diverse range of investment options.
Whether you’re a seasoned investor or just dipping your toes into the financial waters, understanding the unique characteristics and risk-reward profiles of our products can help you make informed decisions that align with your financial goals. Let’s dive into the investment products from Mintos: loans, Fractional Bonds, ETFs, and passive real estate, so that you can make an informed investment decisions.
Loans
What are loans on Mintos?
Types of loan investments
Key features
Does this product match your needs?
Why invest in loans?
Risk and reward
Fractional Bonds
What are Fractional Bonds on Mintos?
Key features
Does this product match your needs?
Why invest in Fractional Bonds?
Risk and reward
ETFs
What are ETFs on Mintos?
Key features
Does this product match your needs?
Why Invest in ETFs?
Risk and reward
Selection Criteria for ETFs
Passive real estate
What is passive real estate on Mintos?
Key features
Does this product match your needs?
Why invest in passive real estate?
Risk and reward
Smart Cash
Key features
Does this product match your needs?
Why invest in Smart Cash?
Risk and reward
Investment goals and diversification
Setting your investment goals
Comparison of Mintos investment products
Loans
Mintos provides a platform where retail investors can invest in loans from around the world via regulated financial instruments (Notes). The partner lending companies offer alternative financing to individuals and small businesses.
How it works
1. Loan origination: Lending companies issue loans to borrowers for various purposes, such as personal use, small business financing, or other needs.
2. Notes creation: Lending companies partner with Mintos to convert loans into financial instruments called Notes, enabling investors to benefit from a regulated investment environment.
3. Investment: Investors can purchase these Notes on the Mintos platform. When borrowers make repayments on the underlying loans, these payments are passed through to investors holding the Notes.
Types of loan investments
1. Core Loans: This option offers a managed portfolio where Mintos handles the selection and management of Notes. It’s ideal for those who prefer a hands-off approach.
2. Custom Loans: This allows investors to set their own investment criteria and automate the investment process based on personal preferences.
3. Manual investing: Investors can actively choose and manage individual Notes, providing the highest level of control and customization.
Key features
- Minimum investment: You can start investing with as little as €50.
- Interest rates: Vary depending on the loan and risk level, typically ranging from 5% to 21%.
- Buyback obligation: Many loans come with a buyback obligation, where the lending company commits to buying back the loan if it becomes significantly overdue ( 60+ days late).
- Secondary Market: Offers liquidity by allowing investors to sell their Notes to other investors on Mintos before maturity.
Does this product match your needs?
Investing in loans on Mintos is for a wide range of investors:
- You are a beginner investor: Core Loans provides a simple, automated way to start investing without needing extensive knowledge or time commitment.
- You are an experienced investor: Custom Loans and Manual Investing options cater to those who want to tailor their investment strategies and have greater control over their portfolios.
- You are a risk-conscious investor: With the availability of loans with buyback obligations, you can find suitable options that balance risk and reward.
- You are a diversification seeker: If you are looking to diversify your investment portfolio beyond traditional asset classes like stocks and bonds, loans on Mintos offer a unique opportunity.
Why invest in loans?
1. Passive income: Investing in loans allows you to earn a steady stream of passive income. With Mintos, your money works for you, providing regular interest payments that can supplement your other income sources.
2. Attractive returns: Loans on Mintos often offer higher returns compared to traditional savings accounts and other fixed-income investments.
3. Diversification: Investing in a variety of loans across different borrowers and lending companies helps spread risk and can lead to more stable returns.
4. Regulated environment: Notes are regulated financial instruments, which adds a layer of protection and transparency to your investments.
5. Flexible investment options: Whether you prefer automated investing or hands-on management, Mintos offers tools to fit your investment style.
Risk and reward
Investing in loans involves inherent risks, such as borrower default. However, Mintos mitigates these risks through several mechanisms:
- Diversification: Spreading investments across multiple loans reduces the impact of any single loan defaulting.
- Buyback obligation: Many lending companies offer a buyback obligation, which provides a level of security by committing to repurchase loans that are significantly overdue.
- Regulated financial instruments: The structured issuance of Notes ensures transparency and regulatory compliance, enhancing investor confidence.
Fractional Bonds
Fractional Bonds on Mintos offer a way to invest in bonds with lower entry barriers and increased accessibility. Traditionally, bonds require high minimum investments and are often out of reach for retail investors. Mintos changes this by allowing you to invest in small fractions of bonds, starting from just €50. You don’t hold the underlying bond directly; instead, you invest in bond-backed securities (Notes) issued by a special purpose entity within the Mintos group.
How it works
1. Bond origination: Lending companies or small and medium-sized entities issue bonds to raise capital. These bonds typically offer a fixed income stream through regular coupon payments.
2. Fractional Bonds creation: Mintos partners with these bond issuers to create Fractional Bonds. Each Fractional Bond represents a claim on the cash flows generated by the underlying bond.
3. Investment: As an investor, you purchase these Fractional Bonds (i.e. financial instruments called Notes) on the Mintos platform. The issuer of the Notes holds the underlying bond and passes the returns on to you.
Key features
- Minimum investment: Start with as little as €50.
- Interest rates: Determined by the coupon rate of the underlying bond, influenced by the bond issuer’s creditworthiness and market factors.
- No fees: There are no fees for investing in Fractional Bonds on Mintos.
- Secondary Market: You can sell your Fractional Bonds on the Mintos Secondary Market if you need to cash out before maturity.
Does this product match your needs?
Fractional Bonds on Mintos could be suitable if:
- You seek fixed income: You want to earn a predictable income stream to help reach your financial goals.
- You prefer lower volatility: You are looking for less volatile investments compared to equities.
- You want diversification: You aim to diversify your portfolio across different asset classes, including bonds.
Why invest in Fractional Bonds?
1. Accessibility: Traditional bonds often require high minimum investments, but Fractional Bonds on Mintos start from just €50, making them accessible to a wider range of investors.
2. Regular income: Bonds typically provide regular coupon payments, offering a steady income stream.
3. Diversification: Adding bonds to your portfolio can help reduce overall risk and improve stability, especially in volatile market conditions.
4. High-yield opportunities: Access high-yield bonds that are usually not available to retail investors, potentially enhancing your portfolio’s return.
Risk and reward
Investing in Fractional Bonds involves certain risks, which include:
- Issuer default risk: The company issuing the underlying bond might default on its obligations, affecting the payments you receive.
- Market risk: Economic downturns, financial crises, or geopolitical events can impact the value of the underlying bonds.
- Interest rate risk: Changes in interest rates can affect bond prices and yields.
- Inflation risk: Inflation can erode the purchasing power of the bond’s interest and principal payments.
- Liquidity risk: Although you can sell Fractional Bonds on the Mintos Secondary Market, there is a possibility that you might not find a buyer or might have to sell them at a lower price.
ETFs
ETFs, or exchange-traded funds, are financial instruments that consist of various types of securities, most commonly stocks or bonds. They are traded on exchanges, which increases their liquidity, and usually track market indices. This makes ETFs a cost-effective way to invest for many investors. With Mintos, you can start investing in ETFs portfolios with as little as €50, benefiting from a diversified portfolio with zero fees.
How it works
1. ETF origination: ETFs are created by pooling together a collection of assets, such as stocks or bonds, that mirror the performance of a specific market index.
2. Fractional shares: Mintos offers ETFs as fractional shares, allowing you to invest small amounts and still achieve broad diversification.
3. Investment: You can invest in a curated portfolio of ETFs selected by Mintos, which are dynamically rebalanced to align with your financial goals and risk tolerance.
Key features
- Minimum investment: Start with as little as €50.
- Zero fees: No fees for buying, holding, or selling ETFs portfolios on Mintos.
- Diversified portfolio: Invest in a mix of stocks and bonds from industry-leading providers like iShares and Vanguard.
Does this product match your needs?
Investing in ETFs on Mintos might be suitable if:
- You seek diversification: ETFs offer broad market exposure, reducing the risk associated with individual securities.
- You want low-cost investing: With zero fees and low entry barriers, ETFs are an affordable way to start investing.
- You prefer simplicity: ETFs provide a straightforward investment option without the need for extensive management.
- You have long-term goals: ETFs are ideal for those looking to build a diversified portfolio to achieve long-term financial objectives.
Why invest in ETF portfolios?
1. Diversification: ETFs portfolios allow you to invest in a wide range of assets, spreading risk and enhancing portfolio stability.
2. Zero commission: Mintos charges no fees for ETF investments, maximizing your potential returns.
3. Reputable providers: Mintos selects ETFs from trusted issuers like iShares and Vanguard, ensuring high standards and reliability.
4. Tailored portfolios: Mintos crafts personalized ETF portfolios based on your risk tolerance and investment goals, providing a tailored investment experience.
Risk and reward
Investing in ETFs involves various risks, including:
- Market risk: The value of ETFs can fluctuate with market conditions, affecting your investment’s performance.
- Issuer risk: The financial health and management of the ETF issuer can impact returns.
- Interest rate risk: Changes in interest rates can impact the value of ETFs.
- Inflation risk: Inflation can erode the purchasing power of future returns.
Selection Criteria for ETFs
Mintos selects ETFs based on the following factors:
- Issuer reputation: ETFs from internationally recognized companies like Amundi, iShares, and Vanguard.
- ETF size and age: Preference for ETFs with significant assets under management and a long market presence.
- Costs: Low Total Expense Ratio (TER) to enhance potential long-term profits.
- Tracking error: Low tracking error to ensure the ETF closely follows its benchmark index.
- Regulation compliance: ETFs must comply with the EU regulatory framework (UCITS) for added investor protection.
- Dividend distribution and taxation: Preference for accumulating ETFs to minimize tax burdens and reinvest profits.
- Replication Method: Preference for physically replicated ETFs to reduce third-party risks.
Passive real estate
Passive real estate investing on Mintos allows you to invest in rental residential real estate without the need to purchase an entire property. This approach offers a simple and accessible way to earn income from rent payments and potential capital appreciation. By investing in financial instruments backed by real estate, you can benefit from the real estate market without the complexities and high costs associated with direct property ownership.
How it works
1. Investment: You invest in rental residential real estate through Mintos, purchasing financial instruments called Notes (Real Estate Securities) that are backed by property.
2. Rent collection: Rent payments from the tenants are collected by the property management company.
3. Income distribution: You receive regular income from the net rent payments, which are the gross rent collected minus maintenance costs, property taxes, and fees.
4. Capital appreciation: Over time, you may also benefit from the potential appreciation of the property’s value.
Key features
- Minimum investment: Start with as little as €50.
- Regular income: Earn income from rent payments and potential long-term capital appreciation.
- No fees: There are no fees for purchasing, holding, or selling real estate investment products on Mintos.
- Liquidity: The Mintos Secondary Market allows you to sell your investments if you need to access your capital before the end of the investment term.
Does this product match your needs?
Passive real estate investing on Mintos could be suitable if:
- You want hassle-free real estate exposure: Gain exposure to rental residential real estate without the complications of property management.
- You seek regular income: Earn steady income from rent payments.
- You value diversification: Add real estate to your investment portfolio to diversify across asset classes.
- You need liquidity: Utilize the Mintos Secondary Market to sell your investments and access your capital when needed.
Why invest in passive real estate?
1. Accessibility: Traditional real estate investments require significant capital and involve complex purchasing processes. Mintos offers a low entry barrier, allowing you to start investing with just €50.
2. Regular income: Rental properties provide a reliable income stream from rent payments, contributing to a stable financial return.
3. Diversification: Investing in real estate helps diversify your portfolio, reducing risk and enhancing potential returns.
4. Potential for capital appreciation: In addition to rental income, there is potential for property value appreciation over time, which can further increase the returns.
5. Convenience: Avoid the time-consuming and often stressful tasks of property management, such as maintenance and tenant arrangements.
Risk and reward
Investing in passive real estate involves certain risks, which include:
- Property market risk: The value of the underlying property can fluctuate due to market conditions, affecting both rental income and capital appreciation.
- Maintenance and operational risks: Unexpected maintenance costs or issues with property management can impact net rental income.
- Liquidity risk: Although the Mintos Secondary Market provides an option to sell investments, there may be times when it is difficult to find a buyer or the selling price is lower than desired.
- Default risk: If tenants default on rent payments, it can reduce the expected income from the investment.
Smart Cash
Mintos Smart Cash is a flexible cash management solution that lets you earn interest on your idle funds by investing in a highly rated money market fund. With Smart Cash, your funds are invested in a money market fund, an AAA-rated investment that offers low risk and high liquidity. This makes it a great option for anyone looking to keep their money accessible while still earning up to 3.5% interest.
Key features
- High interest rate: Earn up to 3.5% interest, significantly more than traditional bank deposits.
- Instant access: Withdraw your funds any day, with no fees or penalties for early withdrawal.
- Low risk: Invested in a money market fund with the highest credit rating (AAA).
- No lock-in period: Unlike fixed-term investments, you can access your money whenever you need it.
- No fees for withdrawing: Your funds remain accessible without any added charges for moving your money.
Does this product match your needs?
Mintos Smart Cash is perfect for you if:
- You require flexibility: Whether you’re saving for a rainy day or simply want to keep your cash liquid, Smart Cash provides flexibility and same-day withdrawals.
- You prefer low risk: If safety and security are top priorities, Smart Cash invests in an AAA-rated fund, making it a conservative yet profitable option.
- You’re seeking better returns on cash: Ideal for those who want their cash to work harder compared to traditional savings accounts or overnight deposits.
Why invest in Smart Cash?
- Enhance idle cash returns: Rather than letting your cash sit in a bank account earning little to no interest, Smart Cash offers a way to grow your money with competitive rates.
- Ideal for short-term goals: If you’re saving for a short-term need, like a major purchase or emergency fund, Smart Cash provides liquidity without sacrificing returns.
- Parking cash during market uncertainty: When market conditions are volatile, Smart Cash offers a safe place to hold cash, letting you stay invested while keeping risks low.
- Perfect for conservative investors: For those who prioritize security over high-risk investments, Smart Cash delivers stable, predictable returns in a low-risk environment.
- Flexible alternative to fixed-term deposits: With Smart Cash, you’re not locked into a specific term, unlike traditional fixed-term deposits. You retain full access to your funds without penalties, giving you the freedom to use your money whenever you need it.
Risk and reward
- Low risk: Your money is invested in a highly liquid, AAA-rated money market fund, known for stability and safety.
- Steady returns: Interest is calculated daily and added to your balance monthly, providing a predictable and reliable source of income.
- Potential risks: While Smart Cash is low risk, no investment is risk-free. In extreme market conditions, liquidity or withdrawals may be temporarily restricted, and capital loss is still possible.
Investment goals and diversification
Diversification is the primary method of managing risk and achieving long-term financial stability. By investing in a mix of loans, fractional bonds, ETFs, and passive real estate, you can balance risk and reward across different asset classes and market conditions. This approach helps protect your portfolio from market volatility, enhancing the potential for consistent returns.
Setting your investment goals
When setting your investment goals, consider the following:
- Financial goals: Are you looking for steady income, capital appreciation, or a mix of both? Different investment products cater to different financial objectives.
- Risk tolerance: Understanding your risk appetite is crucial for selecting the right investments. Higher-risk investments may offer higher returns, but they can also lead to higher losses, if any. Lower-risk options provide more stability.
- Investment horizon: Determine your short-term and long-term investment strategies. Some investment products may be better suited for quick returns, while others are designed for long-term growth.
Comparison of Mintos investment products
Product
Minimum investment
Potential returns
Risk level
Liquidity
Best for
Loans
€50
5%-21%
Moderate to high
Moderate (Secondary Market)
Beginners, experienced investors, risk-conscious investors, diversification seekers
Fractional Bonds
€50
Based on coupon rate
Low to moderate
Moderate (Secondary Market)
Income seekers, low-volatility investors, diversification seekers, accessibility seekers
ETFs
€50
Varies with market
Low to High
High
Diversification seekers, cost-conscious investors, simplicity seekers, long-term goal setters
Passive real estate
€50
Rental income + appreciation
Moderate
Low to moderate (Secondary Market)
Hassle-free investors, income seekers, diversification seekers, liquidity seekers
Smart Cash
€1.00*
Up to 3.5%
Low
High (same-day withdrawals)
Conservative investors, liquidity seekers, emergency fund holders, short-term savers
Mintos offers a range of investment products tailored to various risk appetites and financial goals. Whether you’re seeking steady income, capital appreciation, or a balanced mix of both, Mintos provides the tools and flexibility to help you in achieving your financial objectives. Embrace the power of diversification, set clear investment goals, and enjoy a more secure financial future.
*You can start investing from just €1.00, which is one share of the money market fund. Your total investment can be any amount in full euros. There’s no upper limit for your investment.
Disclaimer:
This is a marketing communication and in no way should be viewed as investment research, investment advice, or recommendation to invest. The value of your investment can go up as well as down. Investing in financial instruments involves risk; before investing, consider your knowledge, experience, financial situation, and investment objectives.
