Another thread got me thinking about this, compare investing in a Quinn Life fund with a similar spread bet. As you are leveraged in the spread bet you can invest the left over money in a high interest deposit account. Here are the numbers:
Quinn
Buy 20k of EuroStoxx50 fund, say it goes up 10% in a year, then cash out.
You are left with a profit of 1370
22000 - 1%(annual charge)=21780 = gross profit of 1780 -23% Tax = 1370
Delta Index + Northern Rock
EuroStoxx50 on DI is about 4450 point currently so 10% represents 445 points if you stake 3 euro per point you would make 1335euro profit.
You would need 750euro (margin requirment x3) in your DI account . This leanes 19250 in NR for the year which will earn 693 (at 4.5% (866)-20%(173) tax) take away from this the cost to 4 spreads (4*2), so a risk free porfit of 685euro.
Have I missed anything?
Quinn
Buy 20k of EuroStoxx50 fund, say it goes up 10% in a year, then cash out.
You are left with a profit of 1370
22000 - 1%(annual charge)=21780 = gross profit of 1780 -23% Tax = 1370
Delta Index + Northern Rock
EuroStoxx50 on DI is about 4450 point currently so 10% represents 445 points if you stake 3 euro per point you would make 1335euro profit.
You would need 750euro (margin requirment x3) in your DI account . This leanes 19250 in NR for the year which will earn 693 (at 4.5% (866)-20%(173) tax) take away from this the cost to 4 spreads (4*2), so a risk free porfit of 685euro.
Have I missed anything?