High risk investments

badbaz1975

Hi

I have put aside £3k that Im willing to use for a high risk but relatively high return investment.

Any ideas?

Cheers as usual

xylophone

That would be "potentially" relatively high return?
High risk means high possibility of losing your shirt?

atush

Indeed. you could in fact, place a bet if you like ;-)

Contracts for difference, or soingel share investing can be the riskiest, but can pay off big. Or you could lose your shirt?

gadgetmind

badbaz1975 wrote: »

I have put aside £3k that Im willing to use for a high risk but relatively high return investment.

My highest risk punts in the last year were banking prefs such as LLPC. The upside might not be as much as you want.

My most recent high-risk investments were in Invesco Perpetual Global Financial Capital (subordinated debt in banks and other financial companies) and an Investment Trust called Pantheon that invests in private equity.

These are small parts of my portfolio so I'm happy with the risk. You may not be.

badbaz1975

cheers, will do some digging.

Does anyone know what the best website is when looking for these type of investments?

gadgetmind

badbaz1975 wrote: »

Does anyone know what the best website is when looking for these type of investments?

Try the Motley Fool forums, but do a lot of reading before posting.

However, actively searching for high risk investments is a trifle perverse. You should instead be looking for investments that are actually fairly low risk given the likely return, but where other investors lack the specialised knowledge to appreciate this.

Investing in haste, and without research, tends to go badly wrong.

Ask me how I know this.

atush

badbaz1975 wrote: »

cheers, will do some digging.

Does anyone know what the best website is when looking for these type of investments?

This alone speaks to me you aren't ready for 'these type investments'. I would go to the Motley Fool and read up on investing in general.

Russe11

I'd go with the tax free option of a gamble rather than high risk investment, cheltenham next week and for 4 days investment you can get a return of
61.9%*


if no female rides a winner in any of the official races over the meeting.


£3000 turns into £4846.15




or you can put it in a high risk investment and if you do actually make any return then it will mostly go in fees and tax.


*you initial investment may loss all of its value, resulting in 100% loss, thats high risk investments though.

badbaz1975

I will take your advice guys, alot more reading for me first before I do anything then!

thanks though, appreciate your comments and advice

gadgetmind

My main bit of advice is to stop thinking in terms of "get rich quick" and instead work on "get rich slowly".

The Invesco Perpetual fund I mentioned has a yield of around 10% and you can hold it in a S&S ISA. Why is that yield so much higher than you could get in a cash ISA?

Simple: because it's higher risk.

Investors talk about risk versus reward, alpha and sharpe ratio. What all of this boils down to is making sure that the extra potential for gain is worth the extra risk and volatility.

The world is full of professional investors who have a deep understanding of these things, and their skills tend to be matched such they find it hard to get an edge over each other. However, novice investors present an opportunity for "tasty treats" so you need to avoid high risk, and go for long term sensible investments, unless you feel you have the inside track.

MoneySaverLog

Russe11 wrote: »

I'd go with the tax free option of a gamble rather than high risk investment, cheltenham next week and for 4 days investment you can get a return of
61.9%*

if no female rides a winner in any of the official races over the meeting.

£3000 turns into £4846.15

*you initial investment may loss all of its value, resulting in 100% loss, thats high risk investments though.

The question then is how many female jockey's are riding in each race, are they any good and if they are who are they up against and what's the form of the horses they are riding. Still odds on by the looks of it to stake 3k and get back £1,846.15 in profit.