D
darag
Guest
Seeing more and more of these products getting the
thumbs down here, it seems we may be coming to a
consensus on tracker bond products? I can't remember
the name of the particular product that I first debated
on this site but I do remember being in a distinct
minority in criticizing these products. Since then it
seems there has been a swing in opinion.
However a lot of the criticism is targeted at the
difficult to understand nature of the derivative portion
of these products. Alternatively there seems to be a
lot of discussion about the likelihood of various things
happening which would affect the value of the derivative
and I think this misses the point.
I believe that fundamentally these products can never
never be a good investment. Given a lump of money to
invest, how would it ever be advisable to stick 85% into
a fixed term, fixed income product and put the other 15%
on the horses? (In fact you'd probably be getting
better value as the bookies margins are typically around
10% while I'd be surprised if the providers are
pocketing less than 2%.) Buying derivatives is a pure
gamble for the personal investor and that's what you're
buying with a portion of your money with these products.
Because the investor losses are limited, there wont be
the same outrage when most of these products fail to
deliver any sort of decent return.
Should the Guide to Savings and Investments but update
to warn against these products?
daRag.
thumbs down here, it seems we may be coming to a
consensus on tracker bond products? I can't remember
the name of the particular product that I first debated
on this site but I do remember being in a distinct
minority in criticizing these products. Since then it
seems there has been a swing in opinion.
However a lot of the criticism is targeted at the
difficult to understand nature of the derivative portion
of these products. Alternatively there seems to be a
lot of discussion about the likelihood of various things
happening which would affect the value of the derivative
and I think this misses the point.
I believe that fundamentally these products can never
never be a good investment. Given a lump of money to
invest, how would it ever be advisable to stick 85% into
a fixed term, fixed income product and put the other 15%
on the horses? (In fact you'd probably be getting
better value as the bookies margins are typically around
10% while I'd be surprised if the providers are
pocketing less than 2%.) Buying derivatives is a pure
gamble for the personal investor and that's what you're
buying with a portion of your money with these products.
Because the investor losses are limited, there wont be
the same outrage when most of these products fail to
deliver any sort of decent return.
Should the Guide to Savings and Investments but update
to warn against these products?
daRag.