£50k to invest - long term growth

[smckeown]

I'm looking into the ways to grow this cash sum. Been looking into funds. Would you suggest I research say 5 funds and self invest spreading the risk. Or use an IFA to advise and take their cut? I'd like to achieve a 7-10% annual growth rate.

[DSLiverpool]

An Ifa will throw you at whoevers paying them the best commission and on £50k it won't be much
Also management fees will eat into your capital
I would look at blue chip and self invest over 10 companies and trades.
But I know nothing (like many)

[screwloose]

I'd say a realistic 7-10% is pretty optimistic especially if you opt to spread to the extent people have suggested.

[Countdown]

smckeown said:

I'm looking into the ways to grow this cash sum. Been looking into funds. Would you suggest I research say 5 funds and self invest spreading the risk. Or use an IFA to advise and take their cut? I'd like to achieve a 7-10% annual growth rate.

Similar situation here. I am researching / self investing directly into FTSE shares (also looking into Corporate Bonds). I am aiming primarily for a good solid income yield as these investments will form one part of my pension.

Thing is, I'm an accountant - I enjoy doing the reaserach, looking at balance sheets, cashflow statements, and ratios. If you don't you might be better off going to an adviser.

[tali1]

Not scientific but i just rely on picks from various sectors HLandswone top 150
I have long term outlook -minimum 10 yrs - and it's "as long as its better % returns than banks/building socities"
My best single return this year was 26%

[CRB14]

screwloose said:

I'd say a realistic 7-10% is pretty optimistic especially if you opt to spread to the extent people have suggested.

Agree, but a good div payer could do 5% of that no?

I've only just started out myself but with this amount I'd personally go with the long term approach rather than trading so make well informed decisions and be willing to sit on them....and don't watch them every hour of the day.

[raptor600]

tali1 said:

My best single return this year was 26%

This really doesn't mean anything - you can only look at your entire portfolio

[fandango_c]

CRB14 said:

screwloose said:

I'd say a realistic 7-10% is pretty optimistic especially if you opt to spread to the extent people have suggested.

Agree, but a good div payer could do 5% of that no?

Depends on how the price of the asset performs as well as the dividend.
You might get a 10% dividend, but if the share prices falls by 20%...

[greygoose]

raptor600 said:

tali1 said:

My best single return this year was 26%

This really doesn't mean anything - you can only look at your entire portfolio

True,

My best so far this year is up 43% and worst down 11%, overall I'm up 24% which is better than I expected. Repeating that performance every year is unlikely I suspect.

[snowy]

greygoose said:

raptor600 said:

tali1 said:

My best single return this year was 26%

This really doesn't mean anything - you can only look at your entire portfolio

True,

My best so far this year is up 43% and worst down 11%, overall I'm up 24% which is better than I expected. Repeating that performance every year is unlikely I suspect.

what does your portfolio consist of to retun 24%

[greygoose]

snowy said:

what does your portfolio consist of to retun 24%

A mixture of stocks I bought for the income (Shell, BP, Vodafone, Sainsburys, Tesco, Halfords, Direct Line), though Halfords has been the biggest riser as bought when they were in the doldrums and the subsequent Olympic effect got everyone out buying bikes so the price rose well.

The others are more speculative AIM mining explorers Condor Gold, Baobab Resources, both up 40%, and Beowulf Mining and Tertiary Minerals both down 10%.

[Sticks.]

Distribution bonds probably represent a relatively safe long term bet

[tali1]

greygoose said:

raptor600 said:

tali1 said:

My best single return this year was 26%

This really doesn't mean anything - you can only look at your entire portfolio

True,

My best so far this year is up 43% and worst down 11%, overall I'm up 24% which is better than I expected. Repeating that performance every year is unlikely I suspect.

I 've spread my risk to about 16 ISA funds -from cautious to volatile -whilst drops are inevitable on individual funds i've never had a annualised portfolio drop
I'm rather inactive on my investments and tend to just sit back - i can't play the short term market.

[jdearden]

Feel free to pm me but we have a product that is returning decent fixed rates over 5 years around the % you are talking.

[fandango_c]

jdearden said:

Feel free to pm me but we have a product that is returning decent fixed rates over 5 years around the % you are talking.

Presumably with a significant amount of risk attached...

[jdearden]

Not really. Products we use to boost people's sipps. But can done with cash investments. Most been going for a number of years and have given the returns predicted each year.

[fandango_c]

jdearden said:

Not really. Products we use to boost people's sipps. But can done with cash investments. Most been going for a number of years and have given the returns predicted each year.

6.5% to 9.5% over the base rate without a significant amount of risk? That's exceptionally high. What sort of products are these?

[LukeSi]

On the less Financial but more fun side with a dam good chance of making a return if you sell, you could always buy a TVR Sagaris / T350 / Tuscan Mk2.

[dalenorth]

You can have my T350T for £50k, it would be a great investment.........for me!!!

[Cheib]

fandango_c said:

jdearden said:

Not really. Products we use to boost people's sipps. But can done with cash investments. Most been going for a number of years and have given the returns predicted each year.

6.5% to 9.5% over the base rate without a significant amount of risk? That's exceptionally high. What sort of products are these?

They could well be structured notes based on stock market returns.....they normally have a knock out if the stock markets sell off say 50% some time during a 5 year period. If not you get something like 10% a year.

As an individual what you are effectively doing is selling option volatility at the wrong price....there are huge fees in these deals for the structuring bank and the distributor but they aren't actually bad products. Depends who issues them though.