What return do you get on your investments

[jsmoke]

So you have bank interest rates, inflation and investment return rates.

I read that hedge funds can get up to 18% return. So for those who invest in stocks, bonds, property, gold etc what return do you get?

 

[booyaka]

There is no fixed returns, the investments will return whatever % the fund/shareprice/unit price increases by.

Are you talking about a year, a month, 4 years, 10 years etc?

Hedge funds, like most other investments have a unlimited upside and downside in reality.

 

[Mr.Stu]

I read that hedge funds can get up to 18% return

Yeah, maybe for the fund managers

 

[elmarko]

Work share incentive plan & share-save are both OK.

For the SIP over 5 years I'll put in £3,600 & get out at least £10,800 (more likely £13,000) (2 free matching shares) - assuming share prices at least remain stable (historically they have been pretty stable - with a slow increase) - the added benefit of this is the salary sacrifice element (so works out even better).

For the share-save I get 20% off the price (at today's rate, for 3 years) - so assuming the share prices behave in a similar fashion to the last 3 years I'll make about 30% (so £9k in, £12k out)

Sadly they limit the amount you can put in, but you can join one each year.

If (need to confirm this) I can join 3 at once at the maximum rate (£250 a month for each one, so £750 per month total) I may be able to get one to mature each year, with the SIP shares maturing monthly after 5 years (which should be cool) but I'm not 100% on the share-save one yet.

 

[Freefaller]

Not much unfortunately.

 

[isonomicjedi]

I aim for between 8-12% return over a year (This includes dividends.)
if you are clever and lucky, on total investments of just under £300,000.
But you are never in real profit until you sell.
it isn't too hard nowadays given the volatile nature of todays markets. When you can make regular day trades and net £300 - £1000 on each if lucky

For example I am down on Kazakhmys £7k this year but the other week made £600 on Brewin Dolphin buying one day selling next.

Sold some Next and Tullow Oil for nice profit.

Bought and sold some Imagination Technologies at a small loss.

Swings and roundabouts but if you keep an close eye on your whole portfolio you can do it without too much difficulty.

I'm well above the 12% a year from middle of 2008 and luckily didn't lose too much in the recent crash.

This does not include a flat I rent out that gives me 7%.

 

[anything I don't mind]

I heard if you can get 7% that is meant to be very good.

 

[isonomicjedi]

I heard if you can get 7% that is meant to be very good.

I think its been a bit easier over the last 4-5 years as there have been such volatile swings 3-5% on stocks and the chance to nip in and make a quick £300-£800 on relatively little outlay are abundant most days.

Maybe I've just been lucky but more often than not I don't hold long term.

If I have made a decent profit I sell.

The reverse of this is Microsoft that I have just dipped my toes into and will hold for some time. 2-3 years. Unless they jump and my portfolio needs me to sell

 

[silversurfer]

7% would mean you have doubled your money after a decade. Thats great.

Godlike would be 20% a year, Peter Lynch Warren Buffet. Basically you will be riding your yachts to work if you manage that for a decade

Inflation is 2.7% or so ? So the gains you think you have, you dont. A bit like your pay rise, especially after taxes and petrol rising.

The return gained on gold is zero allegedly as it never changes price or less cryptically, always buys the same amounts vs CRB, etc or so it says in the manual.
Any return above inflation is more then the hoi polloi ever get on average hence they stay workers rather then owners forever, pat yourself on back if honestly you achieve more

 

[Dagon]

So you have bank interest rates, inflation and investment return rates.

I read that hedge funds can get up to 18% return. So for those who invest in stocks, bonds, property, gold etc what return do you get?

Over the last 3 years or so, about -80%. Bang goes my house deposit.

 

[isonomicjedi]

7% would mean you have doubled your money after a decade. Thats great.

Godlike would be 20% a year, Peter Lynch Warren Buffet. Basically you will be riding your yachts to work if you manage that for a decade

Inflation is 2.7% or so ? So the gains you think you have, you dont. A bit like your pay rise, especially after taxes and petrol rising.

The return gained on gold is zero allegedly as it never changes price or less cryptically, always buys the same amounts vs CRB, etc or so it says in the manual.
Any return above inflation is more then the hoi polloi ever get on average hence they stay workers rather then owners forever, pat yourself on back if honestly you achieve more

I know I've been lucky on a couple of punts the last couple of years and sat out most of 2011 after making a killing early in the year.

Contrary to the FTSE's early gains this year. I haven't done as well this year (recently mainly due to my over exposure to KAZ) as the last few years so have work to catch up this year and may miss my target.

(Missing January too ill didn't help)

But you know you have to take the rough with the smooth.#

As I don't need gains as income I leave all gains untouched which helps me have the oomph to make a few decent size quick trades. (only had a couple of decent ones this year)

 

[toshj]

Bit miffed I didn't invest in Fundsmith at inception when I recommended them to someone else up 60% in two and a half years.

Hedge Funds can certainly help you turn a profit, however the larger ones are off limits to the majority of HNWI. Unfortunately the lock in periods of some of the smaller ones are enough to put you off too. I was speaking to someone who was raising assets for a fund formed in the last few years - their lock in period was 3 years!

Having just sold the shares I had in the company I co-founded, I have absolutely no investments whatsoever anymore

 

[isonomicjedi]

Just remembered this that I got stung on a few years ago.

http://www.mw-w.com/meldex-losses-total-p74m-as-administrators-go-in.html

luckily only lost just under £3k

This was a tip from a family member that I didn't look into in any depth so serves me right.


I was in very ill in hospital at the time and had not set a stop and lost it all, so let that be lesson to everyone about the necessities of stops

 

[silversurfer]

Biotech ? I havent a clue on such things. DNDN was/is a famous one, watch Cramer he is stupidly avid on these shares

I have absolutely no investments whatsoever anymore

Owning your house counts, its usually the best one as you know the customer

I have to disagree in any case, every UK tax payer by proxy owns shares in RBS and Lloyds. We better hope that works or its an extra 1% tax or so next budget

 

[isonomicjedi]

I haven't got much of clue either, hence the loss.

I've tried reading up on individual bio-stocks but the amount of data you tend to get is frightening just trying to decide what is important.

 

[D.P.]

My 401K (US pension) pulled in over 13% on average over 2012, but it was variable month to month (some gains of 8% matched by losses of the same magnitude).

 

[Vanquish-Storm]

I made over 50% on Ocado this year. Although 50% of a small number is only a slightly bigger number.

 

[dowie]

7% would mean you have doubled your money after a decade. Thats great.

Godlike would be 20% a year, Peter Lynch Warren Buffet. Basically you will be riding your yachts to work if you manage that for a decade

Thing is those guys are managing billions - a retail investor making 20% a year, even if consistent, isn't anywhere near as impressive. The fact that these guys have to manage huge orders and take a hit just getting in and out of a position makes the returns even more impressive.

Some locals at prop firms in London will have double or triple digit % returns on their account each month. But for a lot of them what they do doesn't require much capital and isn't necessarily scalable so that profit gets withdrawn monthly... still its nice work if you can still compete against all the black boxes out there...

 

[Jokester]

My pensions and share ISA both gained about 20% last year, but I don't expect the same this year as that was off the back of soaring markets.

 

[silversurfer]

making 20% a year, even if consistent, isn't anywhere near as impressive

I think 20% is impressive for anyone, the key point is consistency. People dont ever do ten years in a row, so we dont compound or snowball the gains

Closest most people got was the housing boom and then it adjusted right back down again, so more pie in the sky gains. Even if you sold at peak its unlikely afterward to keep gaining solidly on top, stacking it up for ten years.
It is impressive because its so rare

People doing cash savings now arent even beating inflation, saving=losing money. Most of us are going to look back and say I got 1 or 2 maybe 3% net average per year.

Microsoft's 1986 initial public offering, and subsequent rise in its share price, created an estimated three billionaires and 12,000 millionaires

Thats how its done, didnt have to work for them. Just buy the right company at the right time and hold it
£1000 in Cisco 1990 was £1,000,000 within 10 years

The shares sold at 1p, £18 now

soaring markets.

also doing well this year. Lots of new money from central banks helps