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How to automate investment strategies without delegating decision making

Inversa allows you to automate investment strategies to implement them without renouncing active decision-making

We live in an era in which we have become accustomed to concepts such as RPA (robotic process automation), which focuses on streamlining mechanical tasks to allow professionals to focus on productive actions. Automation is part of our lives. Logically, it has reached the investment arena. The rise of robo-advisors and the development of tools to automate investment strategies by FinTech and traditional financial institutions have contributed to this paradigm shift.

In alternative financing platforms such as Inversa Invoice Market, you can automate investment strategies and get the most out of your savings continuously and without spending much of your valuable time carrying out permanent control of your investments. This does not imply, as in the case of robo-advisors, that you give up decision-making. Instead, you move it forward in time.

Next, we will dissect how you can automate investment strategies on Inversa’s crowdfactoring platform while maintaining full decision-making power and without losing the opportunity to invest in bills that fit the criteria and desires of each investor.

You do not automate the design of strategies but their implementation

Robo-advisors, which we mentioned earlier, are digital investment managers. In such a way, investors only establish the money they initially invest, the monthly contributions they make to this product, and the risk they wish to assume. The robo-advisor is in charge of making the investments autonomously. Generally, these investments are long-term, so if the investor wishes to obtain short-term profitability or a return on the invested amount in a short period, there are more suitable options than these automated products.

Under this modality, investors proceed to automate investment strategies and their designs.

In Inversa Invoice Market, on the other hand, you can automate investment strategies but set all the parameters to design them: amount to be invested, profitability, term, risk level, invoice debtors, and requirement of credit insurance…

The platform provides you with all the financial information necessary to design investment strategies so that you can control each one of the investments you make.

In addition, the profitability is charged in advance, and the return period of each investment is minimal, not exceeding half a year.

Given the above, robo-advisors would be a good option for people who wish to make their money profitable but are not interested in designing their investment strategies but rather delegate this function to the robo-advisor, as was traditionally done with flesh-and-blood advisors.

Whereas automate investment strategies in Inversa’s marketplace means determining precisely how each investment you make should look and being able to shape your investment strategy whenever you want.

Establish the key elements of your investment strategies

To automate investment strategies in our crowdfactoring platform, you have at your fingertips the possibility to set the following:

  • The amount of money you wish to invest. For example, 1000 euros. In such a way that once the system makes investments for this amount, it will not invest more.
  • Minimum profitability that you wish to obtain. For example, 7%. The platform will only invest in invoices that offer this profitability or a higher one.
  • Term. When automating investment strategies, you can indicate that the invoices you want to invest in expire at most 120 days.
  • Precise risk level based on an independent credit rating. In the Inversa marketplace, the credit rating of each company obligated to pay an invoice is displayed. The higher the score, the lower the risk. You can establish that only invoices with a score of 16 or higher are acquired when automating investment strategies.
  • Debtor typology. It is possible to decide whether the drawees who have to pay the invoices are companies or public administrations.
  • Existence of credit insurance. Some invoices are insured so that an insurance company pays the money invested if a drawee does not pay an invoice.

By linking all these elements together, you can automate investment strategies, without delegating decision-making is possible. Moreover, each investment made autonomously will respond to previous decisions made by the investor.

To put it more prosaically, the software clicks for you.

Automate investment strategies allows you to be consistent

Take advantage of investments that interest you

Why is the functionality of automated investment strategies interesting? Because it only requires people to log into the platform sometimes to check if there is a bill available that might interest them.

People’s day-to-day lives are saturated with events, happenings and homework. Most small investors need more time to monitor their investments and spot investment opportunities daily. This does not mean they do not want to monitor their investment strategies and actively participate in this task.

Automating investment strategies seeks to provide an answer to investors who wish to take a stake in the investment arena but who cannot make this action a daily task.

Thus, the investor designs his investment strategies in advance, establishing all the elements we have described. The program finds investments that fit perfectly with each criterion of the investment strategies.

In this way, you are guaranteed that your investment strategies are implemented by adjusting 100% to your decisions and preferences and that, incidentally, you do not miss out on an ideal investment because you did not have time to consult the invoices available in the marketplace before the financing of the invoice you wanted was completed.

The value of consistency and continuity

In addition to taking advantage of interesting investments, automating investment strategies allows savers to be consistent when investing.

For example, an investor can take a few hours a month to sit down and design his investment strategies for that month. Once they have designed them, all they have to do is enter the data into the platform. The software will take care of implementing the strategies. So the investor only needs a few minutes to enter the marketplace, check how his investments are evolving, and adjust the investment strategies.

Let’s think of an investor who has decided that he is willing to invest 600 euros for the whole month. He enters the platform after a week and finds that no investment has yet been made because no invoice that meets his criteria has appeared. You can decide to alter any of them, or, on the contrary, you can decide to stick to the initial strategy.
The possibilities for action are endless and always within the investor’s reach.

Consistency is a fantastic value in almost every aspect of our lives and investing. Automating investment strategies makes it easier for investors to be consistent and not limit themselves to investing only when they remember or have time, leaving their money idle and preceding attractive investments.

Automating investment strategies is different from passivity

We can extract a fundamental idea from what we have just outlined: automating investment strategies does not imply assuming a passive attitude when managing investments.

Before the digital revolution and the emergence of FinTech, most small investors needed access to the financial market. But, when they did, it was through managers who controlled their investments for them.

While there are complex financial products, such as derivatives, other forms of investment are perfectly understandable by all citizens, such as factoring or crowdfactoring.

Today, access to investment has been democratized. In Inversa, for example, small savers can invest in invoices starting at only 20 euros. Moreover, investors demand active participation.

Automating investment strategies does not mean giving up this proactivity. On the contrary, it means exercising it from the beginning of the investment process.

At Inversa Invoice Market, you always decide in what and with whom you want to invest your money.

Welcome to the era of fully digitised finance

Focus on the companies you invest in (and in which you do not)

One of the most interesting aspects of the possibility of automating investment strategies through the Inversa Invoice Market platform is that you can decide in advance which companies you want to trust and which you do not.

The tool for automating investment strategies allows you to select which companies you want to invest your money. Either because you know the company, have researched it, or have already purchased invoices from it before.

What’s more, you can set two customized investment caps for each company:

  1. The maximum amount you want to invest in each drawee invoice.
  2. The total maximum amount you wish to invest in the drawee company.

For example, set that you only want to invest 300 euros in each invoice of a canning company and a total of 900 euros in the company. The program can make three investments worth 300 euros in three different invoices.

It is also possible to stipulate not to invest in invoices of a particular company, even if they meet all the criteria of the person’s investment strategies. It is sufficient to state that you wish to invest 0 euros in the drawee.

This is extremely useful for you to be sure that your money is not invested in companies you like, either for the activity they carry out, their economic results, or the confidence they generate in you.

You control each aspect related to automating investment strategies.

Adapt your investment strategies to your needs

As we have been pointing out throughout the article, it is possible to adapt investment strategies on the fly. What if the parameters on which you have designed your investment strategies do not fit the reality of the invoice market? For example, you want to obtain a return that is too high for the low-risk threshold you want to deal with. You can change each parameter whenever you want and with complete freedom.

The program then reprocesses and automates the investment strategies, incorporating your changes.

In addition, short-term investments, as in the case of crowdfactoring, allow investors to recoup their money quickly and reinvest it continuously, which makes investment strategies more dynamic.

This also means that investors can always tailor their investment strategies to their personal needs. For example, if a person needs more liquidity in one month, he can invest less money. On the other hand, if he has no liquidity problems, he may decide to reinvest all the money he makes from his investment strategies, increasing his ability to make the most of his savings.

Remember, you make the decisions about your investments

As with RPA, automating investment strategies through Inversa’s platform does not imply less freedom of action for individuals but merely reduces purely mechanical tasks where no decision-making occurs.

Investors who use the tool to automate investment strategies will retain full control over how much they invest, at what return, with what level of risk and exactly who they are investing in. They tell the system what to invest in, and it simply executes this decision.

Automating investment strategies is a decision that seeks to ensure continuity in their implementation and help the investor to take advantage of any product that might interest them.

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