Looking at the strong fluctuation of available investment projects on Envestio it’s clear that you cannot diversify over many projects each month. Additionally, new investments become fully funded within a few hours, at least the ones with a short payback period and high interest rates. So, you’ll have to be quick to place your funds when a new project comes online which is informed via email.
The majority of investors on Envestio seems to be very active and the investor count is now at about 4400. In an average month like February with 1.5M Euros of investible volume, each investor can theoretically only place about 350 Euros. No wonder the projects are fully funded so quickly.
This means that you need some liquidity on your investors account. Trying to transfer money to your account just on time doesn’t work quickly enough and you’ll lose your chance to participate in a good investment.
Spread your funds
Looking at the statistics above it think it’s a fair assumption that there will be on average at least 5 projects per month. That’s my target for diversification of my investments on Envestio. So, at the beginning of each month I transfer all the money that I want to invest during that month to my Envestio account. Whenever a new project comes online I can then quickly invest one fifth of my account balance until my funds are used up. If there are less than 5 projects, I carry the remaining funds over to the next month.
So far this has worked perfectly for me. I can invest quickly into new projects and I’m not putting all my funds into very few projects which I consider as risky no matter how well Envestio has been performing so far.