You are comparing chalk and cheese. An EIIS scheme whole have a completely different risk profile to a type ETF, which means you'd need to get a significantly higher return to compensate for the additional risk.Looking at the scheme as a whole it seems with fees and capped returns that none of them would compare well with (say) investing in an ETF tracking a major index but thats not to say that those ETFs will continue as well.
They are very high risk. Irish SMEs. To put that into context, Bank of Ireland is deemed a small company if investing in a Global index at a market cap of $5.54 billion. These companies are valued in the millions. And some of the EIIS are for just one of them!Sure that's why I said "thats not to say that those ETFs will continue as well."
Point is as an equity investment, EIIS are considered high risk, its just the risk is softened by the tax relief
Sure that's why I said "thats not to say that those ETFs will continue as well."
Point is as an equity investment, EIIS are considered high risk, its just the risk is softened by the tax relief
OP has been changed, it is just about past performance of EIIS schemes and not asking about risk profiles of various investment options.No it is not remotely close. For a start a well diversified ETF is consider a much lower risk the property and your EIIS is easily higher than property or base materials. My advice is to press the pause button and learn about financial risk, before you loose serious money.
this is my impression too, also the return are usuall capped around 15-20% Its perfect for whiskey maturation, they need working capital, they could have the end product sold at maturation but need to fund the 5 years sitting in barrellsMy experience as a recipient of EIIS funding both directly and through funds, is that the investment funds drastically reduce the level of risk (compared to investing in individual EIIS companies), not just because your money is spread across a few different companies, but because of the due diligence and restrictions they put on companies that receive money. In my cases, the sole focus as they go through the process with an EIIS recipient is to ensure the company will have the ability to repay the investment at the end of 4-5 years along with their (fairly hefty) fees. They’re not especially interested in the growth of the company, other than how it pertains to getting the invested money back - they’re not trying to get you a 2x return or anything like that.
Their aim is to get you your tax back, get you your money back and collect their fees, nothing else. And they seem to be quite effective at this. I’d guess if they were willing to disclose the returns on the funds, this is what you’d see.
It's not about your impression or experience, it about statistics and probability. I spent 30+ years doing performance and attribution analysis - in other words trying to explain to people how their investments ended up where the did. But at the end of the day it's your money.this is my impression too, also the return are usuall capped around 15-20% Its perfect for whiskey maturation, they need working capital, they could have the end product sold at maturation but need to fund the 5 years sitting in barrells
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