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Earning with Investment Funds

How to earn with SmartCredit.io Investment Funds: structured crypto portfolio products with automatic rebalancing, optimized for yield across multiple DeFi strategies.

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Personal Investment Funds (PIFs) let you earn by holding a structured crypto portfolio that rebalances automatically - no active management required.

Unlike Fixed Income Funds, which earn through P2P loan interest, Investment Funds earn through portfolio appreciation and the rebalancing strategy built into each product.

How earnings are generated

A PIF holds two types of assets:

  • Base asset - the anchor position (e.g. a stablecoin or a major asset)
  • Investment assets - the portion allocated to growth-oriented assets

Returns come from the price performance of the investment assets relative to the base asset. The fund's automatic rebalancing locks in gains by selling assets that have grown beyond the target weight and buying those that have fallen below - a systematic buy-low / sell-high discipline enforced by the product's rebalance strategy.

Picking the right allocation ratio

Each Investment Product lets you set the split between base asset and investment assets before you create the fund. The platform shows pre-computed performance data for each ratio across 1, 3, 5, and 10-year backtests:

Metric What it tells you
Annual Return Average annualised return at this allocation
Drawdown Worst peak-to-trough loss - how much you could have lost
Sortino Ratio Return per unit of downside risk
Sharpe Ratio Return per unit of total volatility

A higher investment allocation increases potential return and increases drawdown. Use the slider to find the ratio where the Sharpe or Sortino ratio peaks - that is generally the most efficient point on the risk/return curve for that product.

Fees to factor in

PIFs have three fee types that affect net earnings:

  • Sales Fee - paid once at creation; reduces the starting capital
  • Management Fee - ongoing annual charge; reduces net return over time
  • Withdrawal Fee - paid when you exit; reduces realised gains

Always check the Rebalance Strategy Details panel before creating a fund. For short holding periods, the sales and withdrawal fees can materially reduce earnings.

Monitoring your fund

The Investment Dashboard (/invest/dashboard) shows all active PIFs with current allocation, performance, and rebalance history. You can top up a fund at any time by depositing additional assets, or withdraw partially or fully when needed.

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