BESt way to make money off my 10000 pounds

jamesd

Aegis, the requirement from ray1234 was quick profit so what I mentioned was tailored for someone with that objective, while still meeting the other requirement of probably not exceeding a 20% drop in overall value.

Premium Bonds aren't great investments but they will provide some short term action and the low potential of getting a very high return without using a large portion of the available money.

The 70% - 100 in fixed interest savings accounts provides stability and predictable growth, without getting into the potential capital value drop of corporate bonds in a rising interest rate situation.

Then there are some funds near the top of the fund risk level using 30% of the money to provide most of the high returns and high drop potential. These are a quick hack to rapidly get the risk and growth potential without doing lots of risk calculation for a larger range of funds: averaging 7-8% growth of 70% of the money and 75% gain or drop of 30% is a reasonable amount of work for a message posted here.

I'm still concerned that ray1234 won't think that the potential of a 26%+ gain in a year plus a larger Premium Bond win chance is high enough and might raise the emerging markets portion of the money without accounting for the increase in average risk and loss potential. Ray1234 specifying short term gain and not saying how much time is available to recover from drops remains a problem.

Please do feel free to do a more thorough job of producing a sector allocation that you think is likely to meet ray1234's objectives of short term growth potential with the risk of losing no more than 20% of the capital. I'd probably start by shifting some of both the fixed interest and emerging markets to UK equity income... and seeing how you expand from a few choices to more while still keeping the risk on the 20% target will be educational for ray1234 and others who haven't done this sort of thing yet.

dunstonh gave a more succinct description but I did want to try mentioning something that might fit ray1234's desires.

Aegis

jamesd wrote: »

Aegis, the requirement from ray1234 was quick profit so what I mentioned was tailored for someone with that objective, while still meeting the other requirement of probably not exceeding a 20% drop in overall value.

Premium Bonds aren't great investments but they will provide some short term action and the low potential of getting a very high return without using a large portion of the available money.

The 70% - 100 in fixed interest savings accounts provides stability and predictable growth, without getting into the potential capital value drop of corporate bonds in a rising interest rate situation.

Then there are some funds near the top of the fund risk level using 30% of the money to provide most of the high returns and high drop potential. These are a quick hack to rapidly get the risk and growth potential without doing lots of risk calculation for a larger range of funds: averaging 7-8% growth of 70% of the money and 75% gain or drop of 30% is a reasonable amount of work for a message posted here.

I'm still concerned that ray1234 won't think that the potential of a 26%+ gain in a year plus a larger Premium Bond win chance isn't high enough and might raise the emerging markets portion of the money without accounting for the increase in average risk and loss potential. Ray1234 specifying short term gain and not saying how much time is available to recover from drops remains a problem.

Please do feel free to do a more thorough job of producing a sector allocation that you think is likely to meet ray1234's objectives of short term growth potential with the risk of losing no more than 20% of the capital. I'd probably start by shifting some of both the fixed interest and emerging markets to UK equity income... and seeing how you expand from a few choices to more while still keeping the risk on the 20% target will be educational for ray1234 and others who haven't done this sort of thing yet.

dunstonh gave a more succinct description but I did want to try mentioning something that might fit ray1234's desires.

Ahh, I see what you were trying to do now. My apologies for the misunderstanding, I saw what you were recommending and replied immediately based on what I read.

It's certainly an interesting idea, but I suspect that the initial comment by dunstonh is correct; that there are no real options for seeing large short-term profits with a risk of only 20% of the invested capital.

Thanks for the clarification, I understand what it was you were looking for, but I would still have reservations about recommending that anyone get involved with emerging markets as their first investment fund.