Investing in trusts

General June 20th, 2007

Actually, to be more exact, it’s investing in liquidity. According to my friends, it’s somewhat of a higher risk than other investment options such as bonds or unit trusts, but it probably has the highest ROI in the shortest possible time.

So, a few of us pooled a sum of money and passed it to one of my friend’s financial advisor who is supposed to help oversee the entire investment profile. The money that is pooled from individual is probably “affordable money”, in that, cash that we are prepared to lose in the event of an investment failure, but I supposed that’s how it’s supposed to be.

Of course, the optimists will think that we are supposed to expect good returns when we invest, but I would rather prepare myself for the worst. Of course, the returns, if good, can give us approximately 24% returns on capital, which makes out to be 2% p.m. – definitely better than our 0.025% (yes, that’s a fraction of a percent point) p.a. from our savings account. I don’t even have enough for a fixed deposit, much less talk about investments.

Since my portion in the pooled amout is so little, I’d not be expecting a lot of returns in absolute values, but at least it’s better than nothing. We are all supposed to meet the advisor this evening, but I think there are some changes. So it’s going to be this weekend.

Keeping all our fingers crossed 😛

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