How can I make 12% pa on my S&S ISA

darrmont

With interest rates at near zero and inflation running at 3 - 4 % it will be nigh impossible to achieve 12% consistently although you may be able to average near that over a long time if you are willing to take the risks of stockmarkets investing and agressive enough to stomach the risks in emerging markets and other specialist areas but do not expect a smooth ride if you are trying to achieve 12% per annum. Get yourself a good IFA / Stockbroker and be prepared to pay for the service or else be prepared to take the time and try to do it yourself with something like Fat prophets or other such tipping service. On balance you will probably have less worries investing in blue chip UK and other developed markets shares and be contant with 8% per annum it is more viable. Also remember the story of the hare and the tortoise.

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EdGasket

You'd be lucky not to be making a loss right now ! FTSE down nearly 5% in one day ! How are you going to beat the market?

dunstonh

EdGasket wrote: »

You'd be lucky not to be making a loss right now ! FTSE down nearly 5% in one day ! How are you going to beat the market?

This is why you dont look at it on a day to day basis but over the long term.

Someone investing today is getting nearly 5% better prices than yesterday. It doesnt mean tomorrow will see them gain it back again in the short term and indeed, they could suffer another 5% before it goes back up but the one certainty you have with markets is the uncertainty

JohnRo

darrmont wrote: »

With interest rates at near zero and inflation running at 3 - 4 %

I should be so lucky, unless you mean monthly

It's between 10 and 20% on the things that really matter.

bigfreddiel

thanks for allthoe replies - now a different approach

rather than the question I asked, how about a bit of historical information:

whats your average annual return been and over how long a period?

supplemental question - what were your investments?

jimjames

EdGasket wrote: »

You'd be lucky not to be making a loss right now ! FTSE down nearly 5% in one day ! How are you going to beat the market?

A loss on what? I think if you bought 2 years ago you'd still be sitting on around 40% profit even on FTSE tracker.

Ilya_Ilyich

Well according to the table from the barclays equity/gilt study in 2007 as displayed on this page you're looking at something like a 6-7% real return from UK equities in the long term, assuming growth roughly similar to what we've observed in the last halt-century. This shows similarish results for the US market. I'm sure there are similar pages around for other markets. Bear in mind that this is the increase in the index; if you're investing through a UK-based mutual fund you're likely paying a hefty AMC on top of trading fees etc so you should subtract 1.5-2% from these growth figures to get a more realistic picture.

dunstonh

if you're investing through a UK-based mutual fund you're likely paying a hefty AMC on top of trading fees etc so you should subtract 1.5-2% from these growth figures to get a more realistic picture.

Although increase it again if you are using a balancing portfolio utilising asian and emerging markets, specialist funds and property.

ILW

Some Nigerian guy at UBS was showing pretty good returns a year or two ago.

Ilya_Ilyich

Is there good long-term data backing up higher returns for Asian/EM stockmarket returns? What about when compared to GBP and taking into account probable higher FMCs? Is there sufficient historic backing to show that the market won't pile into these higher-yielding markets and thus reduce their return to the 'average' 6-7% return, except with higher volality and charges?