Doing well with shares (average 18% per year) how can I get people to invest in me?

cheapgames

So I'm averaging 18 percent a year in shares over 3 years. However, even at this high rate returns aren't all that big on the 5k I put in there.

Is there a way to get people to invest in me and I take a cut if it profits? Or is it too risky without having a lawyer make some sort of contract and i'll find myself in a legal battle if the investor is unhappy?

eskbanker

I wouldn't worry about the administrative aspects of how to formalise this - fundamentally it seems extremely unlikely that you'd be able to persuade people to part with their money solely on the basis that you've achieved respectable returns during some good years of a bull run.

By all means kid yourself that you're capable of outperforming the market (and all the well-funded professionals trying to do the same) on a sustainable basis but getting random strangers to buy into that seems somewhat ambitious!

To what do you attribute your 'success' thus far?

Prism

Legal issue's aside your main problem is that 18% over the last 3 years is pretty average. Most of the global trackers are around 17% and quite a few active funds exceed this. So a question could be why would someone invest with you when there are many other ways of getting a similar return.

bowlhead99

Yes, you can offer discretionary investment management services by way of business. That's what capitalism's all about, and we applaud the entrepreneurial spirit. You'll first just need to be approved by the financial conduct authority as it's a regulated industry.

So, invest your £5k at 18% annualised for a couple of decades and you'll have over £130k. That would be enough to meet the minimum regulatory capital requirements to set up your own little investment fund as well as pay for some advice on how to stay compliant with the rules. And a lawyer, to -as you suggest - make 'some sort of contract' with your customers.

Thrugelmir

cheapgames wrote: »

So I'm averaging 18 percent a year in shares over 3 years. However, even at this high rate returns aren't all that big on the 5k I put in there.

How many individual shares do you own? £5k is a very small portfolio.

cheapgames

I suspected the above answers, just needed a reality check I wasn't on to anything special!

Many thanks

MaxiRobriguez

How you fare during a downturn will tell you more about your capability than making a decent return when everyone else is too.

Be happy for your 18% annualised and re-evaluate your portfolio to assess how it is likely to perform over the next 3 years not the previous.

keyboardworrier

Everyone looks like a genius in a bull market.

AnotherJoe

keyboardworrier wrote: »

Everyone looks like a genius in a bull market.

Nearly everyone

ruperts

bowlhead99 wrote: »

Yes, you can offer discretionary investment management services by way of business. That's what capitalism's all about, and we applaud the entrepreneurial spirit. You'll first just need to be approved by the financial conduct authority as it's a regulated industry.

So, invest your £5k at 18% annualised for a couple of decades and you'll have over £130k. That would be enough to meet the minimum regulatory capital requirements to set up your own little investment fund as well as pay for some advice on how to stay compliant with the rules. And a lawyer, to -as you suggest - make 'some sort of contract' with your customers.

What about raising funds from investors first via some sort of pre-launch website?

atush

I gave one of my twins 10K in capital to invest for me. But i know it is technically a gift and his money. but i trust him to hand it over if i ask lol. But it will all go to him and his brothers when we die anyway.

Have you asked your parents?