9th April 2022
Smart-Invest is our newly improved tool, enabling you to intelligently invest in great British businesses, on the go. This article explains how the upgraded system works and we’ll reveal our plans for brilliant new improvements that’ll give you an even better Crowd2Fund investing experience.
Smarter & simpler
We’ve developed our Smart-Invest system to make investing via Crowd2Fund even easier. We’ve upgraded the system so that the selection of projects you can automatically invest in is also tied to our new credit risk matrix system. This ensures that we’re always making investments aligned to your appetite for risk.
Defining your risk profile
You can easily configure and specify your risk appetite when setting up your portfolio. Once you’ve confirmed your risk appetite you can then use the various Smart-Invest features. Smart-Invest selects opportunities and builds your portfolio based on your personal profile, alerting you when investments are made and helping you to maintain strategic diversification.
Monthly Smart-Invest plan
You can set up a monthly investment plan by which a pre-agreed amount is automatically collected from you via direct debit. When the funds arrive in your Crowd2Fund account they’re automatically invested into opportunities matching your risk profile.
This is a great way to build your portfolio over time without having to repeatedly log in and select the opportunities you like.
You’ll have full visibility over all your investments and will be notified via email whenever an investment is made on your behalf. You can also view pending investments and can cancel a Smart-Invest pledge before an investment is completed.
As you receive repayments and interest from investments back into your account you can use Smart-Invest to re-invest these funds into opportunities that match your risk profile.
This is especially useful because it means that capital gains are not left in your account uninvested. This enables you to potentially maximise your earnings as your capital is re-deployed automatically and quickly into new opportunities.
Smart-Invest your wallet is great if you’re in a rush. By clicking the Smart-invest My Wallet button it invests your wallet balance automatically.
Futures plans & developments
As previously mentioned, we plan to continue developing the Smart-Invest feature to ensure that our investors receive access to the very best investment services. Our next improvement will integrate Exchange items –potentially opening up 1000s more opportunities for you to invest in and increasing diversification – thus lowering risk of your portfolio. Exchange items are automatically re-reviewed and re-priced based on our credit risk matrix.
We will also develop the system to build a portfolio in a way to further reduce risk by developing an automated contingency fund. Earnings will be lower when this enhancement is enabled – around 3% but risk will also be substantially lower. The earnings will be higher than in a deposit account and liquidity will be available if you need access to your capital.
Diversification score reporting for better investing
We’ll further enhance our portfolio reporting to include a diversification score. This diversification score will automatically assess the size of investments, number of investments and level of risk of your portfolio of investments. Your diversification score will inform your Smart-Invest risk profile and recommend the level of risk and size of investments you should make.
More sophisticated risk portfolios
We plan to further advance the accuracy of our risk profile by potentially using other data inputs such as other investments and the type of investor you are – e.g. sophisticated, high net worth or restricted. We can even use your historical investment choices to help you better define your risk profile.
In the future we plan to develop the system to use more automation from the start. We then plan to progress to machine learning where we’ll integrate much larger data sets to allow us to match the opportunities in line with your risk profile. As the system evolves, data is gathered, and algorithms are developed, we’ll reach a point where we can activate artificial intelligence to manage all your investments on your behalf. The vision is this will behave like your own personal fund and investment manager – all in a highly-informed, compliant and regulated way.
Past performance and forecasts are not reliable indicators of future results. Tax treatment of any of the investment offers will depend on the individual circumstances of each investor and may be subject to change in the future. If you are unsure about any aspect of the information provided by the company, you should seek advice from an independent financial adviser. Do not invest more than you can afford to lose. Investing in start-ups and early stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. Investing in start-ups may expose the individual concerned to a significant risk of losing all of the money or other assets invested. Peer-to-business lending through Crowd2Fund is not the same as holding a bank or building society savings account. When making a peer-to-business loan, your capital lent to a borrower is not covered for compensation in the event of a loss by the Financial Services Compensation Scheme. It may prove impossible to recover all or part of the loan by calling in the business assets held as security on that loan. Reward and Donation funding types are not regulated by the Financial Conduct Authority Crowd2Fund Limited is authorised and regulated by the Financial Conduct Authority (FRN 623683). Crowd2Fund Limited is registered in England and Wales. Registered No. 08472687 Registered Address: 242 Acklam Road, London, W10 5JJ
Past performance and forecasts are not reliable indicators of future results. Your capital invested is not covered for compensation in the event of a loss by the FSCS. Tax treatment will depend on the individual circumstances and may be subject to change. Please see our Risk section before making an investment decision.