Large Investment China Freeway

C

celticman

Guest
Hello all,

Myself and my wife were thinking of investing in Quinn-Life China Freeway over a very short term 18 months. ( MAybe longer if thinks work out )
We have 100 k to invest lump sum ( sold some land )and are thinking about 100 % investment in China Freeway.
We are aware of risks and think we could possible make over 20 k in that period maybe more.
Don't require money at moment, mortgage low and want to make it work aggressively.
As olympics are being held there late next year, and economy looks on the up we are confident of good return 15% + per annum.
We are aware of currency risk also.
Are we totally mad or are there other options we are not taking into consideration.
Any opinions appreciated.
 
!!!

It doesn't seem like you have read much of the advice on this site from the evidence in your post. You will already know what advice you will receive if you have. I'm not saying that there is anything wrong with your idea, just that I would imagine that under most circumstances this investment would not be advised on AAM.

First, you are right, you could make 20% in 18 months in this fund, but, equally you could make 200% or 2000% and you could lose just as much! No one knows. Any investment expert will tell you that trying to gauge the direction of any economy is impossible (to any reasonable degree of certainty). Hence if you want to gamble your money in this fund, feel free to do so. Its your money and your choice. But it is just that - a gamble, and not an investment (or at least not a balanced/well thought out investment).

If you however you want to invest then you need to consider:

1. Does this investment help you achieve a balanced well-diversified portofolio? Are you putting all your eggs in one basket?

2. What is your attitude to risk, how will you feel if you are down 20,000 euro after 6 months? 50,000euro?

3. What time scale is most appropriate for this investment? An equity investment lasting 18 months is in disagreement with conventional wisdom. A lot of equity investment looks like a 5+ year timeframe with some people even saying that much longer timescales are even better.

4. Do you need independent financial advice about the best option for this money. Its a large sum by any standards. Maybe it might be better to pay it off your mortgage, pay it into a pension etc etc...

5.
are there other options we are not taking into consideration.
Click to expand...
Are you serious? There are even other options within Quinn funds!

Hope that helps.
 
Very, very risky. Chinese market has tripled over the last 18 months and there's a lot of dumb money rushing in. Maybe it will triple again, I don't know, but I think you're late to the party.

Below are a couple of links from a financial blogger living in China. Brief, but worth reading.

All the classic signs of a bubble are in place — manicurists giving stock tips, folks borrowing against credit cards to go long, day trading grannies, parabolic price moves, etc

When bubbles burst it ain’t pretty, and people who are paying the wrong price for Chinese stocks are going to learn an expensive lesson.

[broken link removed]

[broken link removed]
 
celticman said:
Are we totally mad
Click to expand...

I wouldn't say mad but if I were you I would do a little more research before investing that amount of money. I had a lump sum to invest a while back but spent 4 months reading every book I could get my hand on before doing anything with my money

You give reasons as to why you think the Chian fund will increase. Maybe you are right but have you considered that maybe these events have already been factored into the price of the fund?

As the previous poster said you gotta understand your risk factor and the riskiness of the China fund and as an emerging market you gotta be prepared for loss if things go bad. I think the std deviation on the emerging market funds are around 18% so it is a relatively risky investment
 
Hi

Maybe we are being a bit hasty, we have done a fair amount of research and aware of risk.
Question for Diarmuidc, you invested 50 K approx recently, would you mind informing me where and how your investment is getting on.
Thanks for advice.

Celticman
 
18 months is too short a time period..you should put your money in a deposit account.

to put all your money in one fund is also highly highly risky. Ok the Chineese economy offers great opportunities for all of us to make some serious money in the future. Just dont put all your eggs in the one basket!!

If you want to survive in this game and not get slaughtered you have to use good old fashioned common sense.
 
You must log in or register to reply here.
Back
Top