20-100k high risk investment - no use of interest products

[fizz47]

sorry for another daily where to invest question but a someone came to me recently posing the following question and if there is such a thing...

They want to invest between 20-100k for 12 months however due to personal beliefs wherever it is invested it must be free of interest related products and be invested in 'morally' and 'ethically' sound products therefore it EXCLUDES:

Any sort of interest earning bank account
Any bonds / premium bonds.
Any funds / companies that have debt ( as therefore the company is paying interest)
Any funds / companies that supply / manufacture weapons, harmful products etc..


Is it possible to find something to invest in over 12 months that excludes the above?

The only thing that came to mind is a cheap BTL property but then that wouldn't be worthwhile for just 12 months,

[Simpo Two]

How do they feel about dividends?

[stongle]

So you need a Sukuk Finance product, avoiding Riba (money from money).

The short term investment horizon does make this problematic, as generally Sukuk has an ownership factor. You'd need high asset value appreciation in the short term (very high risk). 20-100k is going to limit your options. CIMB, Franklin Templeton all offer Sukuk products, but returns on 12mths don't appear great and entry / exit charges could wipe out any potential gains (struggle to keep pace with inflation after costs).

Manufacturing company with a niche product struggling to get to market willing to give up Equity in rather than debt?

[p1stonhead]

fizz47 said:

sorry for another daily where to invest question but a someone came to me recently posing the following question and if there is such a thing...

They want to invest between 20-100k for 12 months however due to personal beliefs wherever it is invested it must be free of interest related products and be invested in 'morally' and 'ethically' sound products therefore it EXCLUDES:

Any sort of interest earning bank account
Any bonds / premium bonds.
Any funds / companies that have debt ( as therefore the company is paying interest)
Any funds / companies that supply / manufacture weapons, harmful products etc..

Is it possible to find something to invest in over 12 months that excludes the above?

The only thing that came to mind is a cheap BTL property but then that wouldn't be worthwhile for just 12 months,

Presumably Islamic yes? Sounds like they need one of the below to suit their needs. I would imagine something bespoke needs to be drawn up however depending on what type of investment they want. 12 months isnt very long though so it may ultimately not be worth it? Charges would probably kill any profits off unless its some insane high risk investment with huge potential returns.

https://islamicmarkets.com/education/the-five-main...

[fizz47]

Simpo Two said:

How do they feel about dividends?

It would seem dividends are ok as long as they are from an organisation that does not partake in the aforementioned list

[stongle]

fizz47 said:

Simpo Two said:

How do they feel about dividends?

It would seem dividends are ok as long as they are from an organisation that does not partake in the aforementioned list

Almost anyone mainstream is ruled out by Company paying interest. Even a lot of Islamic Co's have issued debt in global markets. Given the constraints of Sukuk finance, I think any regulated product will be a struggle - you'll be at the err "esoteric end" of the asset spectrum.

Potentially securities lending might work, taking a fee for lending assets over record date and taking a split on any tax advantage - but 100k won't touch the sides on costs; let alone return.

Its super risky, but some form of crypto might be worth a look - particularly one that has either an embedded return feature or redeemable value. There are a few tokens that offer this (and in the main have been financed by raising Equity finance through token sale). You said high risk! This is a very specialised area of finance - are you an IFA or just a friend offering advice?

[anonymous-user]

I have 25% of my pension fund in a ethical / moral fund; managed by L&G.

Performing quite well I believe too.

[sidicks]

Lord.Vader said:

I have 25% of my pension fund in a ethical / moral fund; managed by L&G.

Performing quite well I believe too.

Most funds have a few ESG investment funds, but they aren’t anywhere near as restrictive as are required for the OP.

[Muncher]

Bitcoin?

[p1stonhead]

Muncher said:

Bitcoin?

He said high risk not batst crazy.

[DonkeyApple]

Muncher said:

Bitcoin?

Gambling.

[ellroy]

sidicks said:

Most funds have a few ESG investment funds, but they aren’t anywhere near as restrictive as are required for the OP.

Don’t conflate ESG and Ethical Sid, the two are not necessarily the same thing.

Quite a few oil companies score well on ESG scores, but don’t tick the ethical box for many charity sector managers for example.

[anonymous-user]

p1stonhead said:

He said high risk not batst crazy.

. Best post so far in 2018!

[FredClogs]

Aircooled Porsche.

[p1stonhead]

FredClogs said:

Aircooled Porsche.

Ship has sailed

[sidicks]

ellroy said:

Don’t conflate ESG and Ethical Sid, the two are not necessarily the same thing.

Quite a few oil companies score well on ESG scores, but don’t tick the ethical box for many charity sector managers for example.

Fair point.

[FredClogs]

p1stonhead said:

FredClogs said:

Aircooled Porsche.

Ship has sailed

Water cooled Porsche?

[Cheib]

fizz47 said:

sorry for another daily where to invest question but a someone came to me recently posing the following question and if there is such a thing...

They want to invest between 20-100k for 12 months however due to personal beliefs wherever it is invested it must be free of interest related products and be invested in 'morally' and 'ethically' sound products therefore it EXCLUDES:

Any sort of interest earning bank account
Any bonds / premium bonds.
Any funds / companies that have debt ( as therefore the company is paying interest)
Any funds / companies that supply / manufacture weapons, harmful products etc..


Is it possible to find something to invest in over 12 months that excludes the above?

The only thing that came to mind is a cheap BTL property but then that wouldn't be worthwhile for just 12 months,

I know of one listed company that fits the above critieria....has no debt and is very unlikely to need any (has a decent amount of cash on the balance sheet)...has been operating for twenty years and never had any debt. It's a UK based company etc and fits all criteria. If you want to know more details PM me.

It does pay a dividend.

[ReaperCushions]

FredClogs said:

p1stonhead said:

FredClogs said:

Aircooled Porsche.

Ship has sailed

Water cooled Porsche?

With the rumors of the next gen GT3RS being turbocharged, I'd say now was a very good time to buy a N/A one of any description.