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    So the years' nearly up and with some hard saving I've ended the year with around £3,000 from student loans and bursaries. I was wondering if there were any low-medium risk investments that could offer 7-15% returns per annum that anyone knows of. I could invest less or slightly more but I just want some suggestions. I'll investigate any reasonable suggestions.

    I've heard stocks and shares are pretty bad unless you're looking a) long term in a solid stock or b) know what you're doing and investing a fair amount as commission eats the investment.

    Savings accounts are awful and this monetary policy is killing savers.

    Premium bonds look pretty safe but nothing is guaranteed. I've read something about mutual funds or offering assistance to start ups (this one is unlikely considering my lack of business experience).

    So, any ideas?
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    (Original post by Makebelieve15)
    So the years' nearly up and with some hard saving I've ended the year with around £3,000 from student loans and bursaries. I was wondering if there were any low-medium risk investments that could offer 7-15% returns per annum that anyone knows of. I could invest less or slightly more but I just want some suggestions. I'll investigate any reasonable suggestions.

    I've heard stocks and shares are pretty bad unless you're looking a) long term in a solid stock or b) know what you're doing and investing a fair amount as commission eats the investment.

    Savings accounts are awful and this monetary policy is killing savers.

    Premium bonds look pretty safe but nothing is guaranteed. I've read something about mutual funds or offering assistance to start ups (this one is unlikely considering my lack of business experience).

    So, any ideas?
    Stocks. Put it all into apple. They are shockingly low at the moment.
    My predictions are 20% rise by the end of this year
    40% by the end of next year
    200% rise in 5 years


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    I think you'll struggle to get 7-15% returns in a low/medium risk investment. You may also want to consider how long you plan to invest the money.

    To get that kind of return you would probably have to look at stocks/commodities, in which case you run the risk of loosing a lot of money.

    In the very short term I'd stick it in a Cash ISA until you've actually come up with a plan.
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    (Original post by anonymouse01)
    Stocks. Put it all into apple. They are shockingly low at the moment.
    My predictions are 20% rise by the end of this year
    40% by the end of next year
    200% rise in 5 years


    Posted from TSR iPad
    Technology is changing so fast and the economic outlook doesn't suggest strong global growth in the near to medium future. Who's to say that Apple will crack the emerging markets and Google and Samsung won't beat them to it? Your 200% rise over 5 years prediction is particularly worrying to say the least.
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    (Original post by zeropoint)
    I think you'll struggle to get 7-15% returns in a low/medium risk investment. You may also want to consider how long you plan to invest the money.

    To get that kind of return you would probably have to look at stocks/commodities, in which case you run the risk of loosing a lot of money.

    In the very short term I'd stick it in a Cash ISA until you've actually come up with a plan.
    I'm starting to read about matched betting, heard of it?

    I'd probably be looking at 5-7 years with potential to increase the investment year on year by £2,500, if there's anything about.
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    (Original post by Makebelieve15)
    I'm starting to read about matched betting, heard of it?
    Indeed I have. One of my friends did it for a while. The problem is that the amount you can make is limited by the terms of the deal offered by the bookmaker. Also bookmakers will look out for this sort of thing, and will block you from their sites after a while.

    My friend made a few hundred pounds profit before he ran out of bookmakers/patience. It requires quite a bit more attention than a normal investment where you just invest and forget.

    Personally I'm holding my savings as cash right now. The price of gold is plummeting and there's a meaningful chance that once it stops falling it will start going up again. As such I'm going to wait for the price to fall a bit more and then have a look at that.
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    (Original post by zeropoint)
    Indeed I have. One of my friends did it for a while. The problem is that the amount you can make is limited by the terms of the deal offered by the bookmaker. Also bookmakers will look out for this sort of thing, and will block you from their sites after a while.

    My friend made a few hundred pounds profit before he ran out of bookmakers/patience. It requires quite a bit more attention than a normal investment where you just invest and forget.

    Personally I'm holding my savings as cash right now. The price of gold is plummeting and there's a meaningful chance that once it stops falling it will start going up again. As such I'm going to wait for the price to fall a bit more and then have a look at that.
    Ah, yeah, reading about it on moneysavingexpert atm, they've a massive thread on it. Does seem effort but a few hundred would at least give 10% I guess. Ah, gold. What's the commission rates on buying and selling gold or other commodities, do you need fairly large capital to start that?
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    (Original post by Makebelieve15)
    Ah, yeah, reading about it on moneysavingexpert atm, they've a massive thread on it. Does seem effort but a few hundred would at least give 10% I guess. Ah, gold. What's the commission rates on buying and selling gold or other commodities, do you need fairly large capital to start that?
    It depends how you want to get in to gold. There are three main options:

    1. Buy physical gold, usually in the form of coins which you take possession of. Popular option but means to sell it again you have to deal with postage and packaging.

    2. Exchange Trades Funds (ETFs), basically an organisation holds a large pot of gold, and sells ETFs in them which behave like shares. As the gold price moves, the ETF price moves. These are easier to deal with since its all online, but they tend to be more volatile than actual gold. (Example ETF ticker: GLD)

    3. Gold mining shares. Buying shares in gold mines gives you exposure to the price of gold, but it is also influenced by other things like how the mining company is doing. As such you have to pay attention to not just the price of gold, but how the company is doing.

    EDIT: Just realised I didn't answer your question. The price of physical gold varies day on day, but you can buy a 1oz coin for pretty much the price of 1oz gold + 1-3%, so within your price range. For the other two options you woudl need to set up a share dealing account, which may charge you by transaction or periodically. For you needs and ammount, I'd probably go physical gold compared to the other two.
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    £2,500 isn't enough to "invest". Brokerage fees will wipe out any potential profit. Also most of the suggestions people are giving are just wild gambles.

    Put it in a savings account.
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    (Original post by zeropoint)
    It depends how you want to get in to gold. There are three main options:

    1. Buy physical gold, usually in the form of coins which you take possession of. Popular option but means to sell it again you have to deal with postage and packaging.

    2. Exchange Trades Funds (ETFs), basically an organisation holds a large pot of gold, and sells ETFs in them which behave like shares. As the gold price moves, the ETF price moves. These are easier to deal with since its all online, but they tend to be more volatile than actual gold. (Example ETF ticker: GLD)

    3. Gold mining shares. Buying shares in gold mines gives you exposure to the price of gold, but it is also influenced by other things like how the mining company is doing. As such you have to pay attention to not just the price of gold, but how the company is doing.
    Oh...I think option 2 is the most familiar with but as they behave like shares where there is a hosting company, is there a large commission fee?
    Thanks for the info btw, sounds interesting, I don't want to do anything stupid but seeing as I've saved and I've got quite a bit of free time after May 28th, I thought I'd see how I could grow the money.
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    (Original post by Makebelieve15)
    Oh...I think option 2 is the most familiar with but as they behave like shares where there is a hosting company, is there a large commission fee?
    Thanks for the info btw, sounds interesting, I don't want to do anything stupid but seeing as I've saved and I've got quite a bit of free time after May 28th, I thought I'd see how I could grow the money.
    Well have a look at it, do your research. Personally I don't think the price of gold will have finished falling by May, but that's just my opinion.

    For example Natwest will let you set up an stock dealing account, basically they charge a flat commission for each trade (I think £15).

    I think my friend is with Barclays, they charge an annual account fee, but no comission per individual trade. So better for him as he does a lot of trades in a short time.
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    (Original post by zeropoint)
    Well have a look at it, do your research. Personally I don't think the price of gold will have finished falling by May, but that's just my opinion.

    For example Natwest will let you set up an stock dealing account, basically they charge a flat commission for each trade (I think £15).

    I think my friend is with Barclays, they charge an annual account fee, but no comission per individual trade. So better for him as he does a lot of trades in a short time.
    Ah okay, well I'll get some reading done and try matched betting, build up the capital as much as it allows and continue to monitor the price of gold. Tbh, precious metals seem like safe bets but if not timed right it could be a while before seeing great returns.
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    (Original post by Makebelieve15)
    Ah okay, well I'll get some reading done and try matched betting, build up the capital as much as it allows and continue to monitor the price of gold. Tbh, precious metals seem like safe bets but if not timed right it could be a while before seeing great returns.
    I'm not sure I'd call it safe, although you're right to use the word 'bet'. As Observatory says, its a gamble of sorts. Be careful.
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    (Original post by Observatory)
    £2,500 isn't enough to "invest". Brokerage fees will wipe out any potential profit. Also most of the suggestions people are giving are just wild gambles.

    Put it in a savings account.
    There are discount brokers which offer small charges i.e £5.95 per trade etc. OP , I recommend shares , they are a solid long term investment and if you do your research you are less likely to lose money and get a decent return. I would suggest reading up on investing first though, Amazon has a good variety of investing books on there.
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    (Original post by Makebelieve15)
    Ah okay, well I'll get some reading done and try matched betting, build up the capital as much as it allows and continue to monitor the price of gold. Tbh, precious metals seem like safe bets but if not timed right it could be a while before seeing great returns.
    urm safe bet yeh... the price of gold has taken a bit of a downturn recently, the lowest in 2 years
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    (Original post by Makebelieve15)
    Technology is changing so fast and the economic outlook doesn't suggest strong global growth in the near to medium future. Who's to say that Apple will crack the emerging markets and Google and Samsung won't beat them to it? Your 200% rise over 5 years prediction is particularly worrying to say the least.
    Believe what you wish. A quick google search for the patents apple has been filing for 5 years will show you that nobody can beat them. The technology which is coming is mind-blowing, and it will be exclusive to apple.

    You drop your iPhone by accident and it automatically rotates itself before impact to prevent the screen from being hit?

    HEARD IT HERE FIRST


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    Don't by gold as an alternative investment right now. You are essentially speculating entirely on behavioural trends in the trading market. If you want to 'safely' invest your money look at what sort of risk you are willing to take, what sort of return you would be happy with, then calculate a portfolio with a risk profile that would suit your purposes.

    Realistically your best bet would be to see if you can find some data on the betas and co linearity of a variety of securities, then get yourself a stock isa and build a nice portfolio with around 8-12 positions open. The only reason I say keep the number of positions you have in your portfolio fairly low at this point is for commission purposes, but there are some brokers that have a different pricing structure that may suit your needs, try iii.co.uk for example.

    Basically my biggest piece of advice to you would be to do a bit of reading on portfolio theory and hedging nonsytematic risk. For the love of god don't put all your eggs in one basket.
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    (Original post by anonymouse01)
    Believe what you wish. A quick google search for the patents apple has been filing for 5 years will show you that nobody can beat them. The technology which is coming is mind-blowing, and it will be exclusive to apple.

    You drop your iPhone by accident and it automatically rotates itself before impact to prevent the screen from being hit?

    HEARD IT HERE FIRST


    Posted from TSR iPad
    Their share price has dropped 43% since last September. $700 down to $404 (today)

    Apple had a good run, but without a new game changer it is unlikely they will be able to get back on top.

    When the iPod, iPhone and iPad were released they were all easily the best in their class, but now each device is competing against equivalent devices from other companies.
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    (Original post by anonymouse01)
    Believe what you wish. A quick google search for the patents apple has been filing for 5 years will show you that nobody can beat them. The technology which is coming is mind-blowing, and it will be exclusive to apple.

    You drop your iPhone by accident and it automatically rotates itself before impact to prevent the screen from being hit?

    HEARD IT HERE FIRST


    Posted from TSR iPad
    IP isn't the only thing that will determine apple's future performance. What about its already strained margins due to various procurement issues it is having currently in china? Apple has opted for an efficiency led oem manufacture with high levels of process innovation and modularisation in order to minimise costs, but what the hell does that do for the responsiveness of the company? Not to mention that it is hideously reliant upon foxconn's manufacturing capability, which is already coming under fire for poor worker conditions. They have recently had to relocate some of their assembly into rural areas in order to keep the labour cost advantage that the value chain's margins depend upon.

    Equally, past performance as an indicator of future success is a dangerous metric. Just because apple is ubiquitous today doesn't mean it will be tomorrow. Similarly the technology/semi process sector is a famously 'blue ocean' industry, in other words the boundary of the market is constantly changing as firms exploit new customer segments (or new markets entirely) that couldn't have possibly been imagined years earlier. Think about 10 years ago, the idea that a social media website could have am IPO similar to that of Facebook was just unimaginable. Similarly entire sectors like biotech, and tablet computers have seemingly sprung from absolutely nowhere. My point is that merely stating that apple have a favourable position from its patents is fairly irrelevant in the medium term. Besides, holding a patent doesn't do much unless you can exploit it successfully. Take the example of xerox, at one time or another that company held the patents for multiple technologies now worth billions in their own right. Nevertheless they focused on photocopiers, lacking the capabilities required to turn a resource into a source of competitive advantage and profit.

    Basically, saying something will thrive because of technology alone doesn't fly. The market is well aware of that.
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    Put it in a ISA, and save it for a rainy day.
 
 
 
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