£400,000 to Invest

£400,000 to Invest

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Discussion

Extra 300 Driver

Original Poster:

5,281 posts

245 months

Friday 15th August 2014
quotequote all

So, say a company has £400k to invest and try and get a better return than HSBC are giving at the moment, what would it be?

• Gold
• Classic Cars
• Property (Domestic)
• Property (Industrial)
• Wine

CIS121

1,259 posts

212 months

Friday 15th August 2014
quotequote all
Having a similar question myself currently but about £240k

Gold - gamble
Classic Cars - not sure HMRC would take to this, must be careful regarding benefit in kind and also perhaps a gamble
Property - 5 to 7% returns look realistic plus capital appreciation minus mgmt fees. What we're currently looking at. Also could take on a a property with development potential
Wine - personally I'd steer well clear of unless I was a wine merchant and this was my business

R77C

89 posts

190 months

Friday 15th August 2014
quotequote all
A fixed income fund that I have been working with for a while are producing 8.25% (fixed) p.a. at a 'very low risk' level and 12% variable with a 'low-medium' risk. With a 90-day liquity opportunity, I'd say this is well suited for company funds!

DoubleSix

11,691 posts

175 months

Friday 15th August 2014
quotequote all
R77C said:
A fixed income fund that I have been working with for a while are producing 8.25% (fixed) p.a. at a 'very low risk' level and 12% variable with a 'low-medium' risk. With a 90-day liquity opportunity, I'd say this is well suited for company funds!
Nothing offering 8.25% will be 'very low risk' by any sensible definition. Sorry.

fido

16,752 posts

254 months

Friday 15th August 2014
quotequote all
DoubleSix said:
Nothing offering 8.25% will be 'very low risk' by any sensible definition. Sorry.
Indeed. Even Greek 10yr Bonds only pay 6%! I'd be interested to see the constituents of this 'low risk' fund ..

DoubleSix

11,691 posts

175 months

Friday 15th August 2014
quotequote all
The lists compiled by the OP et al all contain a huge variance in risk, liquidity and term.

What I would take from that is that you appear to need professional advice.

Happy to meet either of you to discuss options. Feel free to drop me a PM.




Sy1441

1,113 posts

159 months

Friday 15th August 2014
quotequote all
I'd steer clear of areas where you don't have an interest or knowledge as the pitfalls are greater. I lost a bit of money on Gold recently, thankfully not a lot as the buy price I got was exceptional. It was a long term investment though so not that worried.

R77C

89 posts

190 months

Friday 15th August 2014
quotequote all
DoubleSix said:
Nothing offering 8.25% will be 'very low risk' by any sensible definition. Sorry.
Hi DoubleSix,

I appreciate your apprehension, however you have based your reply on absolutely no facts whatsoever. I am confident that if you even took a brief look over the fund it would make complete sense to you - especially given that I am guessing by your latter response that you have worked within the finance industry for many years like myself.

From my experience, an investment with no chance of losing initial capital (much like most fixed income investments) and proven fixed quarterly paid income compounded equals very low risk from any perception! Especially as I know that in the last 20 years no payment has ever been missed by the fund.

Any more information wanted please feel free to pm.

R77C

89 posts

190 months

Friday 15th August 2014
quotequote all
fido said:
Indeed. Even Greek 10yr Bonds only pay 6%! I'd be interested to see the constituents of this 'low risk' fund ..
Hi Fido,

Again, appreciate your apprehension. if you PM your email address, I'll happily send some information to you to give you an idea how it works. I don't work for them in any way, I only introduce some of my clients now and again, but happy to make an intro if its interesting

Edited by R77C on Friday 15th August 14:39

Fotic

719 posts

128 months

Friday 15th August 2014
quotequote all
r77C why can you not just tell us about the fund here? Requesting PMs makes it appear more suspect, not less.

UpTheIron

3,992 posts

267 months

Friday 15th August 2014
quotequote all
Fotic said:
r77C why can you not just tell us about the fund here? Requesting PMs makes it appear more suspect, not less.
+1

I'm interested enough to want to know more about anything that is "low risk" and 8%...

DoubleSix

11,691 posts

175 months

Friday 15th August 2014
quotequote all
R77C said:
DoubleSix said:
Nothing offering 8.25% will be 'very low risk' by any sensible definition. Sorry.
Hi DoubleSix,

I appreciate your apprehension, however you have based your reply on absolutely no facts whatsoever. I am confident that if you even took a brief look over the fund it would make complete sense to you - especially given that I am guessing by your latter response that you have worked within the finance industry for many years like myself.

From my experience, an investment with no chance of losing initial capital (much like most fixed income investments) and proven fixed quarterly paid income compounded equals very low risk from any perception! Especially as I know that in the last 20 years no payment has ever been missed by the fund.

Any more information wanted please feel free to pm.
R77C,

I am not apprehensive. However, you are right about one thing, I have worked in finance for many years.

Feel free to post up the fund and I, and no doubt others, will be happy to share thoughts on the level of risk one is taking on to achieve 8.25%


nyt

1,803 posts

149 months

Friday 15th August 2014
quotequote all
+1 too.

Sounds great to me

Magog

2,652 posts

188 months

Friday 15th August 2014
quotequote all
Do we write for investor prospectuses c/o the Prison Warden FCC Butner or USP Coleman? Or can they be obtained direct from the Giza office?

z4RRSchris99

11,220 posts

178 months

Friday 15th August 2014
quotequote all
I presume its a capital protected note with a pretty suspect underlying, but you wouldnt get 90 day access.

zuby84

995 posts

189 months

Friday 15th August 2014
quotequote all
High yielding residential BTL?

I'm just doing some initial due diligence on a portfolio sale of about 20 properties for about £400k (but will need about £50k spent on top for general wear and tear which needs fixed.) Total rent achievable is £75k pa.

DoubleSix

11,691 posts

175 months

Friday 15th August 2014
quotequote all
z4RRSchris99 said:
I presume its a capital protected note with a pretty suspect underlying, but you wouldnt get 90 day access.
mmm I was thinking some sort of structured product that our friend doesn't understand as fully as he should.

But even so, our office tea boy understands risk/return to the extent that 8.25% simply isn't achievable without taking on significant risk.

Hilts

4,383 posts

281 months

Friday 15th August 2014
quotequote all
Magog said:
Do we write for investor prospectuses c/o the Prison Warden FCC Butner or USP Coleman? Or can they be obtained direct from the Giza office?
lol

Without looking at BOP, ISTR that's where Madoff and Stanford were last residing.

z4RRSchris99

11,220 posts

178 months

Friday 15th August 2014
quotequote all
DoubleSix said:
z4RRSchris99 said:
I presume its a capital protected note with a pretty suspect underlying, but you wouldnt get 90 day access.
mmm I was thinking some sort of structured product that our friend doesn't understand as fully as he should.

But even so, our office tea boy understands risk/return to the extent that 8.25% simply isn't achievable without taking on significant risk.
8.25% risk free with 90 day access I would mortgage our property and put it all in that.

Eleven

26,271 posts

221 months

Friday 15th August 2014
quotequote all
CIS121 said:
Having a similar question myself currently but about £240k

Gold - gamble
Classic Cars - not sure HMRC would take to this, must be careful regarding benefit in kind and also perhaps a gamble
Property - 5 to 7% returns look realistic plus capital appreciation minus mgmt fees. What we're currently looking at. Also could take on a a property with development potential
Wine - personally I'd steer well clear of unless I was a wine merchant and this was my business
I can and will, if you like, sell you a small block of flats in Nottingham that will yield 8-9% gross.