Investing is a strategic way to grow your wealth, but it's crucial to understand how long your funds might be "locked in" before you can access them again. Let's explore what this term means and how it applies to different types of assets available on Mintos.
What does "Locked In" Mean?
When you invest money, "locked in" refers to the period during which your funds are committed to an investment. This period varies widely depending on the type of investment and its associated terms.
Loans:
When you invest in loans on Mintos, the lock-in period typically matches the loan term. This can range from a few months to several years, depending on the loan's maturity date. However, Mintos offers a Secondary Market where you can sell your investments to other investors before the loan matures, providing some flexibility.
Bonds:
Each Fractional Bond has different interest rates, maturities, and terms. You can find all the details in the applicable base prospectus and final terms. If you wish to liquidate your investment before the maturity date, you can sell it on the Secondary Market.
ETFs:
ETFs (exchange-traded funds) are financial instruments consisting of various types of securities, most commonly stocks or bonds. ETFs are traded on an exchange, which increases their liquidity. They usually track one of the market indices and are not actively managed. As a result, ETFs are the most cost-effective way of investing for the majority of investors.
You can sell them anytime, as these investments do not have a maturity date.
Real Estate:
The maturity of each investment in passive real estate on Mintos varies by property. Mostly, these are long-term investments, with maturities typically ranging from 10 to 25 years. This time frame is essential as the return on your investment is derived not only from regular rent payments but also from the potential capital appreciation of the property over time. For precise maturity details related to a specific investment, please refer to the terms and conditions outlined in the offer. If you want to sell your investment before maturity, you can do so via the Mintos Secondary Market.
Smart Cash:
Mintos Smart Cash has no minimum holding period. However, to earn interest, funds must be held from one cutoff time to the next (11:00 EET on business days).
In most cases, the money you withdraw from Mintos Smart Cash should be available in your Mintos account the same day.
However, there could be situations where the money arrives in your account on the next business day. The reason for this is that withdrawals constitute sell orders for money market fund shares. And if the settlement with the fund takes longer, your money might not be available the same day.
In a distressed market situation, the fund may limit or stop trading of its shares or charge a withdrawal fee, as described in the fund’s prospectus. A distressed market could be caused by a global economic or financial crisis, a pandemic, or other major events outside the control of market participants.