As always there is
a catch, and that catch is that the yield on investments such
as these is typically low. The simple reason for this is that
somebody else is taking a risk by underwriting your investment
whatever occurs in the market and as such expects to be compensated
for that risk. When your investment shows a profit your guarantor
will collect a share of your dividend before passing over the
remainder to you.
to such an investment then it is important for the investor
to establish precisely what are the terms involved. First of
all what is the minimum return that is guaranteed? Sometimes
it is no more than the initial stake and, if that is the case,
the investor may wish to consider whether having all that money
tied up for so long in a zero-profit adventure is worthwhile.
there are likely to be conditions in relation to the length
of time for which the funds must be committed for a guaranteed
returns investment, which could run into many years. Often there
is a surrender charge which could indeed mean the investor making
a loss if the policy was to be terminated before it was to reach
no “best” approach to guaranteed returns investment
or higher risk investing alike, is it down entirely to the individual
to assess the extent of the risk and to make an informed decision
on the basis of all the facts. Search for investment opportunities
using the above companies.