Double your money in 5 years?

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Replies

  • benoodbenood Forumite
    1.4K Posts
    If you want to double your money in 5 years then you need to take on a significant level of risk - reducing your diversification in some way or other.

    I would probably go for individual company investments - perhaps 5 shares in "unfashionable sectors" in the expectation that they will be rerated at some point in the next 5 years, I'd probably confine my research to the ftse100 (as I think large caps as a whole are underrated at the moment) and shy away from resources.
  • Singh87_2Singh87_2 Forumite
    21 Posts
    Any other interesting ideas? :D
  • TTMCMschineTTMCMschine Forumite
    684 Posts
    You don't need to take unnecessary risks at all. If you want as near to no risk at all then you go for bonds, and that is why you get such a low rate of return. If you want higher rates of return you invest in things with increased risk. I go for the stock market, the key is to be very selective, looking for undervalued companies (like in unloved sectors as mentioned above) & to always look for a margin of safety. It can pay to look at companies that have products that will be driven by legislation, etc, like for example TV transmission changes to digital soon, so shares in companies like Pace (PIC) who are just about the World leader in digital set top boxes should perform very well over the next 2 years - their turnover should rocket because people will *have* to buy a digital reciever - they have no choice.
  • TTMCMschineTTMCMschine Forumite
    684 Posts
    PS get a copy of Ben Grahams "The intelligent investor" - it's well worth reading & will help you to keep your head clear & not get carried away with speculative or emotionally driven decisions.

    Good Luck
  • it you are really are prepared to lose the lot then why wait the full five years to double the money, you could do this on the first day on the roulette wheel!
    if however you want a run for your money and a less cavalier approach, then easy to manage pooled investments will give you much greater growth potential than can be expected from traditional deposit based savings accounts:

    100% growth has been acheived in many sectors over the last five years and as you should be aware past performance is no guarantee to future returns.

    Most UK and Overseas Equity (share based) pooled investment funds have performed to this level.

    Most Fixed asset funds (gilts and corporate bonds for example) have not acheived this level of performance.

    Managed commercial property funds have mainly performed to this level and most private property has seen greater growth than this.

    you should use your isa allowances each year if possible (£7,000 07/08 rising to £7,200 in 08/09 tax year) to avoid additional taxation on your funds.

    if you want to be more hands on with this investment then buy your own shares and back your own opinions. you could invest into business as venture capital and back someone elses ideas or you could buy a franchise business opportunity of your own. you could study horse racing form for five hours a day etc etc.....these are harder work and potentially higher risk but can offer higher rewards.

    ask yourself how much time and effort you want to put in to this.. if not alot then take professional advice and review every 6 months to 12 months.
    good luck.....
  • TTMCMschineTTMCMschine Forumite
    684 Posts
    managed porfolios are crap. period. What is the point of paying some cretin 3 to 4% to manage your investment when they can only achieve 8% overall per year - at best & NOT guaranteed - you might as well stick it in the bank. Learn what you're doing & make your own decisions & DONT stick it on the roulette wheel ;)
  • HerewardHereward Forumite
    1.2K Posts
    managed porfolios are crap. period. What is the point of paying some cretin 3 to 4% to manage your investment when they can only achieve 8% overall per year - at best & NOT guaranteed - you might as well stick it in the bank. Learn what you're doing & make your own decisions & DONT stick it on the roulette wheel ;)

    Whould you complain if you managed fund achieved 8% when the market fell by 10%?
  • dunstonhdunstonh Forumite
    108.2K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
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    they can only achieve 8% overall per year - at best

    Its a good job that 10-15% a year return is closer to the mark then.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • benoodbenood Forumite
    1.4K Posts
    ... What is the point of paying some cretin 3 to 4% to manage your investment ....

    And that charges are closer to 1.5%
  • EdInvestorEdInvestor
    15.7K Posts
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    It's easy with geared BTL.

    If you put down 10k deposit and borrow the rest, the value of the property only has to rise to 110k for you to double your investment on paper.

    That's why people find it so attractive. ;)

    There's little real risk compared with borrowing money to invest in the stockmarket, where if you lose your losses are magnified.

    And of course someone else (the tenant) pays the cost of servicing the loan.
    Trying to keep it simple...;)
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