Help pls to turn £50k in premium bonds into a better green investment

BLB53

So can the forum suggest a green investment or bonds that is safe that will have a better financial performance than premium bonds?

The DIY Investor has been moving into 'green' funds so that could be worth looking into...
http://diyinvestoruk.blogspot.com/p/green.html

Voyager2002

Moe_The_Bartender wrote: »

Greencoat share price is at a premium of 13% to NAV. Not a very attractive proposition as far as I can see.

Since there is no market for shares in the assets that Greencoat holds, the figure for NAV is somewhat arbitrary. Probably it makes more sense to look at the P/E ration in order to decide whether it is over-valued at the moment.

AnotherJoe

On that basis, buy WPCT which is running at probably a discount of 50% so obviously it must be 63% more attractive . /s <<<<

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Originally posted by AnotherJoe

Moe_The_Bartender wrote: »

Is that sarcasm?

That's what "/s" means. Every day's a learning day

stevendoherty

I think you should look into SEIS and EIS government schemes. They are the lowest risk investments I've heard of and they're supported by HMRC. You are basically investing in small or new companies.

Lets say you invest £50,000 in a SEIS company, if that company does well and doubles its value, you can sell your share for £100,000. That sounds like a normal thing, right? Well on top of that, you get £25,000 income tax relief (50% of investment) back from the government just for risking your capital in a new British company. So your final profit would be £75,000, which is 150% of ROI.

On the flip side, lets say you invest the same amount but the company crashes and burns.
You start with £50,000. You end with £0. You still receive £25,000 from government for risking your capital in a new British company. You will also receive a Loss Relief of around 22.5% of your initial investment. So you now have £25,000, plus the Loss Relief of £11,250 (22.5% of £50,000).
So even if the company folds you still walk away with a staggering £36,250 on your £50,000 invest which is the worst case scenario. That works out to 72.5% of your original investment.

So, in a nutshell, if you invest in ANY SEIS company, the most you can lose is 27.5% of your investment and that's only if the company folds.You can make money even if the company breaks even. You can make a killing if the company's value increase 2x, 3x, 4x etc.

Moe_The_Bartender

AnotherJoe wrote: »

That's what "/s" means. Every day's a learning day

And there was me thinking it was a typo.

AnotherJoe

You'll quite often see "/s for avoidance of doubt" as a phrase on posts in forums. Not here so much admittedly.

Voyager2002

stevendoherty wrote: »

I think you should look into SEIS and EIS government schemes. They are the lowest risk investments I've heard of and they're supported by HMRC. You are basically investing in small or new companies.

Spot the contradiction...


The tax relief is not "free money from the government" but a reduction in your tax bill, and would only benefit people who would otherwise be paying that much in tax. Definitely not suitable for everyone!

edgex

Voyager2002 wrote: »

Spot the contradiction...


The tax relief is not "free money from the government" but a reduction in your tax bill, and would only benefit people who would otherwise be paying that much in tax. Definitely not suitable for everyone!

Indeed
& I would say not suitable at all for an 80yr old