How Auto-Investing Fits Into A Busy Investors Strategy

Investing in crowdfunding campaigns can be quite exciting. Investors would get a notification on when a crowdfunding campaign starts. Investors would then log in at the precise moment at which the campaign starts and input their investment.

However, this can be quite frustrating for some busy investors who do not have the luxury to always log in at the time of crowdfunding to make their investments as many popular crowdfunding projects can reach their funding goals in very short durations.

At Funding Societies, some of our crowdfunding campaigns can be closed as quickly as 1 to 2 minutes.

That is why, we created an Auto-Invest function for our investors to improve their crowdfunding experience.

What is Auto-Invest?

Auto-Invest is a tool that Funding Societies provides to help streamline your investing process. It involves using an algorithm that helps you automatically make investments on our platform according to your desired investment criteria. Recently, we have made improvements to our auto-investing tool, upgrading it from 2.0 to Auto-Invest 3.0; read on to find out more about this new version! 

Read more: What is Auto-Invest?

How to use Auto-Invest 3.0?

To access Auto-Invest, log-in to your investor account on Funding Societies and click on “Settings” in the top left-hand corner of the page. You will be directed to the Auto-Invest tab which comprises of 3 key components as outlined in the turquoise boxes below:

1. Create a new (auto-invest) bot

Clicking on the blue box will direct you to a page where you can set-up an auto-investing bot that will help you invest in specific loans according to your requirements.

Funding Type

The first step is to choose the loan type you want to set up the auto-invest bot for:

Industries

Next, you can select the industries that you would like the bot to invest in.

Interest rate, tenor and amount range.

Lastly, you can customise your preference of investments by setting the range of interest rate, tenor (in months) and auto-invest amount for the bot. You can set an amount range that you are comfortable with for auto-investing. However, the minimum and maximum auto-investment amounts will be dependent on your loyalty tier.

(Do note that if the minimum investment limit on a loan is higher than your allocated maximum auto-investment amount, you will not be included in that round of auto-investments.)

Read more: How do I better match my auto-invest selection to my investment preferences?

2. Auto-Invest bot

You can view your auto-invest bot(s) here, and make edits to your preferences over time!

3. Exhaust balance and Loyalty tier

You have the option of enabling the auto-invest bot to exhaust your available balance for a loan if your balance falls below your pre-set range of auto-investment amount. However, do note that this will only happen if your available balance is also within the minimum and maximum investment limits of the loan.

There are also some additional auto-invest settings available for investors of higher loyalty tiers:

Silver-tier and above:

Max Borrower Exposure

This setting allows you to determine a maximum percentage of outstanding funds that the Auto-Invest bot will allow for a single borrower.

Gold-tier and above:

Max Industry Exposure

This sets the maximum percentage of outstanding funds the Auto-Invest bot will allow for a single industry

Minimum Company Age

You can set the minimum age of companies that you would like to auto-invest in.

Minimum CBS Rating

You can determine the minimum credit score of the companies ’personal  guarantors that you are comfortable with for the auto-investment However, this rating selection

Quantum-Based Auto-Invest Range

This enables you to specify different brackets of minimum and maximum loan amounts to auto-invest based on its loan volume.

Read more: Funding Societies’ Investor Loyalty Program

Three possible scenarios

Here is a flow chart of the three scenarios that can happen involving your selected auto-invest range and the option to exhaust your balance:

 

Pre-Crowdfunding Round

  • Error Messages

You can check if you’ve been auto-invested into a loan during the pre-crowdfunding round. If you were not auto-invested into a loan, an error message will appear to explain why.

(Do note that if you made any changes to your auto-invest preferences while a loan is up for pre-crowdfunding, they will only take effect for the next crowdfunding onwards.)

Read more: Auto-Invest Error Messages Explained

  • Opt-Out

If you have been auto-invested into a loan but decided not to invest in a loan after reviewing its loan fact sheet, you can always opt-out from the auto-investment! Simply click on “Opt-Out” on the loan card to do so, as highlighted in turquoise below:

Read more: Understanding the Loan Fact Sheet

(However, do note that this action is irreversible. Hence, once you’ve opted out of an auto-invested loan, you can no longer invest in it during the pre-crowdfunding round and can only re-invest in the loan during its crowdfunding round.)

Crowdfunding Round

  • Top-Up Investments

If you would like to top-up your investments in a loan that you were auto-invested into, you can do so by participating in the crowdfunding round.

  • Not Auto-Invested

If you were not auto-invested into a loan, you still have the opportunity to do so during the crowdfunding round!

Read more: How do I participate in the crowdfunding round?

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