High risk investments

Russe11

MoneySaverLog wrote: »

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.

very few professional ones, many of the races won't even have a female jockey, charity races do not count, Might be one fancied horse with a female onboard. The investment is high risk but the risk reduces/can improve in odds as the races pass as if a female jockey gets injured and can not race then they will not be replaced with another female, unless its an amatuer.

really I only expect people to say thats gambling, most people don't see investments and insurances as gambling, I see them as pretty much the same thing, you can choose the amount of exposure, length of investment and potencial return all the same.

As for funds returning 10% thats anly what happened previously not in the future. If your having 3k of high risk investment then its unlikely you will have the ISA capacity for that unless you have a large % of the tax free saving as high risk anyway.

gadgetmind

Russe11 wrote: »

As for funds returning 10% thats anly what happened previously not in the future.

They'll have that yield unless a few of the banks and insurers default on their debt. While this risk isn't 100% quantifiable, we have seen that governments are prepared to do to prevent banks defaulting.

Even though holders in ordinary shares of UK banks got burned hard, and for good due to dilution, bond and preference share holders have come through OK.

I bought my prefs in Nat West and Lloyds in the dark dark days, and now the sun is starting to shine.

Risk versus reward.

Good luck with your flutter.

jamesd

Are you willing to risk more than the £3,000 you have available?

If yes, financial spread betting, contracts for difference or leveraged ETFs may be appropriate methods. All of these involve leverage and the loss can be far more than the money you put down, busting you out with a margin call. Effective cash management and low leverage levels are critical to making rather than losing money.

If no, options or covered warrants might be appropriate. These lose the money if they don't reach their trigger condition. They can't lose more than the purchase price but pay out a leveraged return potentially if they are successful.

Russe11

the investment returned 66.6% in the end.

Happy days, roll on next year.




APR eqiv of
6[SIZE=-2] [/SIZE]077.25%

Thrugelmir

badbaz1975 wrote: »

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

I did go to Ascot once with a professional gambler to watch the King George.

Overnight the heavens opened and it rained. So the bookies opened the odds on Mtoto to around 5.5 to 6 to 1. My friend said open you pockets the ground is still firm. I placed £70 quid , he placed around £3,500.

The horse won by around 10 lengths.

That's called knowing your stuff.

Me, I've hardly backed a horse since.

Lomcevak

badbaz1975 wrote: »

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

Small-cap oil and gas is good if you put in the research, as a bit of luck with the drill can lead to a huge rise in the share price. Obviously repeated bad luck (or inept drilling) can do the reverse, with a major risk of getting diluted into oblivion by repeated share issues as the company struggles to raise money for more drilling - many small-caps don't have the cashflow from operations to fund ongoing exploration.

With research there are some good options (e.g. Encore was great a couple of years ago, as a share price around 15p was almost entirely supported by cash, giving a couple of free shots at Catcher which won big - i'd say this is exactly the kind of thing gadgetmind is referring to as "fairly low risk given the likely return, but where other investors lack the specialised knowledge to appreciate this" as at first sight it didn't look much). And there are some complete dogs. But if you accept that oil isn't going to be cheap any time soon then buying at the dips in the oil price market (i.e. not now) gives you a built-in 'rising tide' effect for the whole market too that may help bail you out of a bad pick.

Not one for widows and orphans, but a good option IMO if you're prepared to do the research and accept a risk to your £3k if you're wrong (or unlucky). TMF O&G board a good place to start, Stockopedia is good too.

Totton

Here's five,

- Newton Asian Income
- First State Global Emerging Market Leaders
- Throgmorton Investment Trust
- Electra Private Equity
- Scottish Smaller Companies Trust

HTH,
Mickey