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, each investment has a term that matches the underlying loan’s maturity date. This can range from a few months to several years. How you can access your money before maturity depends on how you invest:
Core Loans: You can cash out funds from your Core Loans portfolio at any time. Funds are first taken from available portfolio cash, and if needed, your investments are sold automatically to other investors who use the same portfolio. Cash-out may take from a few minutes up to a few days, depending on demand from other investors and current market conditions. Some investments may not be eligible for cash-out – learn more.
Custom Loans and manual investments: You can sell your investments to other investors on the Secondary Market before the loan matures. How quickly they sell depends on demand from other investors and the terms you set, such as the price. If you don’t sell, your money is returned through regular repayments until the loan matures.
Bonds:
If you invest through the High-Yield Bonds portfolio, you can cash out at any time. Cash-out is executed at the prevailing market prices on the respective day and can take anywhere from a few minutes to a few days, depending on availability.
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.
Crypto ETPs:
Crypto ETPs have no maturity date and no minimum holding period, so you can sell them anytime. Sell orders are executed instantly when the exchange is open during trading hours. If you place a sell order when the market is closed, it will be processed as soon as trading resumes. You'll always see the current market status and expected execution time when confirming your order.
Please note that while your sell order is executed once the market is open, receiving the cash in your account may take up to 3 business days.
Keep in mind that crypto ETP prices can be highly volatile, so the value you receive when selling may differ significantly from the amount you invested.
Stocks:
Stocks have no maturity date and no minimum holding period, so you can sell them anytime. You can place a sell order at any time through your Mintos account. Sell orders are executed during exchange trading hours; if you place one while the market is closed, it is queued and processed as soon as trading resumes. Sell orders are market orders, so the sale is executed at the prevailing market price at the moment of execution.
Once your sell order is executed, the trade needs to settle before the proceeds appear as available cash in your Mintos account. Settlement can take up to 3 business days, depending on the settlement cycle of the relevant market. If the stock trades in a currency other than the euro, a currency conversion is applied to the proceeds.