Investment Service that only charges a percentage of growth

johnnyhandsome

Is there any such thing as an investment / advice company that charges a portion of the growth they achieve on an annual basis, rather than a percentage of my total investments every year, whether my investments rise or fall..

I have been using a financial adviser now for 12 years, and I just calculated what they charged me, for completing very little work, and at no risk to them.

masonic

If they are getting a percentage of the growth they achieve, then they would be incentivised to invest your money in the highest risk investments possible to maximise their returns. http://www.youtube.com/watch?v=-DT7bX-B1Mg

johnnyhandsome

Well, I would think they would have to have some form of asset model in place. I don't think that is fair to say all would.

Thrugelmir

Markets do fall. That's a fact of life. Like rises. There's no correlation with the fact that the investment managers are doing a bad job. Performance is relative and has to benchmarked ( against an index for example).

What you need to consider is whether your IFA adds any value.

masonic

johnnyhandsome wrote: »

Well, I would think they would have to have some form of asset model in place. I don't think that is fair to say all would.

Nobody has said all would. But the fact remains, there would be an incentive for them to do so.

Ask yourself how many businesses you can think of who could go a year or two with no money coming in. If it sounds too good to be true...

masonic

johnnyhandsome wrote: »

Can only find one company that say they charge 10% of annual growth and only invest in the best funds in sectors?
blackknight.uk.com
Has anyone used them?

Not on the Financial Services Register, so probably a scam - avoid.

I do hope this doesn't turn out to be a spam thread.

johnnyhandsome

My investment portfolio has increased every year the last 5 years, so maybe it is just a smarter way of working, they say they take 10% of growth. I downloaded their free best investment funds report, and they highlight the best funds in each sector. I compared a few of mine and I am definitely not invested in the best funds!! Missed out on loads of growth.

masonic

Marking this thread as :spam:. I suggest others do the same.

johnnyhandsome

Give over, im asking a question, and a good one at that!!

Thrugelmir

johnnyhandsome wrote: »

My investment portfolio has increased every year the last 5 years,

That's the general direction of markets over the time frame. Starting from the lows of the GFC of 2007/2008.

In any 25 year period you've the probability of "losing" 40% in any one year to contend with.

johnnyhandsome

40%?? Where did you get this from, I am a medium risk investor, and never dropped anywhere near this.