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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.

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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

Further info