Application

Investment Funds

Personal Investment Funds (PIFs) let you invest in structured crypto portfolio products with automatic rebalancing - different from P2P lending, and designed for investors who want managed exposure to crypto assets.

Last updated:

Key Takeaways

  • SmartCredit.io Investment Funds let you create a Personal Investment Fund (PIF) - a structured crypto portfolio that rebalances automatically according to a pre-defined strategy.
  • You choose an Investment Product, set your allocation between a base asset and investment assets, and the fund rebalances on-chain when drift exceeds the configured threshold.
  • Investment Funds are separate from Fixed Income Funds: PIFs invest in a crypto portfolio, while FIFs lend funds to P2P borrowers at fixed rates.
  • Each product shows pre-computed performance metrics (annual return, drawdown, Sharpe Ratio, Sortino Ratio) for 1, 3, 5, and 10-year horizons at different allocation ratios.
  • Fees vary by product and include a sales fee at creation, an ongoing management fee, and a withdrawal fee.

SmartCredit.io Investment Funds let you create a Personal Investment Fund (PIF) - a structured crypto portfolio product that automatically rebalances your holdings according to a pre-defined strategy.

Investment Funds are separate from Fixed Income Funds. Fixed Income Funds are for P2P lending - you deposit assets and the platform matches them to borrowers. Investment Funds are for portfolio investing - you allocate between a base asset and one or more investment assets, and the fund rebalances automatically.

How it works

  1. Select an Investment Product - SmartCredit.io offers pre-defined investment products, each with its own base asset, supported investment assets, rebalance strategy, and fee structure.
  2. Set your allocation - choose how much of the fund to keep in the base asset and how much to allocate to the investment assets. The allocation is expressed as a percentage (e.g. 80% base / 20% investment). The platform shows projected performance metrics for your chosen ratio before you commit.
  3. Create your PIF - confirm the transaction from your wallet. This deploys your Personal Investment Fund on-chain.
  4. Deposit funds - deposit the amount you want to invest into your PIF. The fund begins operating according to the selected product's strategy.

Investment Products

Each Investment Product defines:

  • Base asset - the stable or anchor asset held in the majority position
  • Investment assets - the assets the fund invests the remaining allocation into
  • Rebalance strategy - the rule that triggers a rebalance (e.g. drift-based: rebalance when the actual allocation deviates from the target by more than the threshold)
  • Rebalance threshold - the drift percentage that triggers an automatic rebalance
  • Fees - see Fees below

Each product has pre-computed performance data for different allocation ratios, covering 1, 3, 5, and 10-year horizons:

Metric What it shows
Annual Return Average annualised return for the period
Standard Deviation Volatility of returns
Drawdown Maximum peak-to-trough loss
Sortino Ratio Risk-adjusted return penalising only downside volatility
Sharpe Ratio Risk-adjusted return relative to total volatility

The performance table updates as you move the allocation slider, so you can compare the risk/reward profile of different ratios before creating the fund.

Fees

Each Investment Product has its own fee schedule, displayed in the product details panel:

  • Sales Fee - charged when you create the PIF
  • Management Fee - ongoing annual fee applied to assets under management
  • Withdrawal Fee - charged when you withdraw funds from the PIF

Fees vary by product. Always check the Rebalance Strategy Details panel before creating.

Investment Dashboard

The Investment Dashboard (/invest/dashboard) shows all your active Personal Investment Funds. From there you can:

  • View each fund's current allocation and performance
  • Deposit additional funds into an existing PIF
  • Withdraw from a PIF
  • Monitor rebalance history

To create a new fund, click New Investment Fund from the dashboard - this takes you back to the product selection form.

Investment Funds vs Fixed Income Funds

Investment Funds (PIF) Fixed Income Funds (FIF)
What you do Invest in a crypto portfolio Lend to P2P borrowers
Returns Portfolio performance Fixed-term loan interest
Rebalancing Automatic, rule-based Not applicable
Counterparty No borrower counterparty Borrowers on the platform
Withdrawal Subject to withdrawal fee Must wait for borrowers to repay

FAQ

What is a Personal Investment Fund (PIF) on SmartCredit.io?

A Personal Investment Fund (PIF) is a structured crypto portfolio product on SmartCredit.io that automatically rebalances holdings according to a pre-defined rule. You select an Investment Product, set your base-to-investment asset allocation ratio, deposit funds, and the fund rebalances on-chain whenever actual weights drift beyond the configured threshold.

What is the difference between a PIF and a FIF on SmartCredit.io?

A Personal Investment Fund (PIF) invests in a crypto portfolio and rebalances automatically - the goal is portfolio returns. A Fixed Income Fund (FIF) is for P2P lending - you deposit assets and the platform matches them to borrowers at fixed rates, earning interest income. They are entirely separate products with different risk profiles and use cases.

How does automatic rebalancing work in a PIF?

Each Investment Product has a rebalance threshold - a drift percentage. When the actual allocation deviates from the target by more than that percentage (for example, the investment asset grows from 20% to 26% of the fund), the fund executes an on-chain rebalance transaction automatically to restore the target ratio.

What fees apply to Investment Funds?

Fees vary by product and include a sales fee charged at creation, an ongoing management fee applied annually to assets under management, and a withdrawal fee charged when you withdraw from the PIF. Always check the Rebalance Strategy Details panel for the exact fee schedule before creating a fund.

Further info