Tuesday 13 April 2010

Discreet investment opportunity

I have thought carefully about whether to post regarding this investment as I am proud of my integrity and standards. The reason for this is that the club in which I am an investor has strict rules regarding advertising and this fact is simply due to a matter of law. Essentially, the club operates a hedge fund investment which is an unregulated area of investment and it is illegal to directly advertise hedge funds. However, I have no intention of mentioning the name of the club or it's website address, you will have to contact me directly for that, however I am quite comfortable describing an outline of the clubs activities as it will appeal to many, I am sure.

First of all, savings and deposits in Banks and Building Societies are just that. There is no investment element to a deposit with a Building Society. They use your money to lend to others and your return is whatever interest rate is being paid at the time. With the Bank of England base rate being so low at the moment, this return is all we all know, paltry. There is little, if infact no risk of course, but no real return.

"Investment" of course does carry some risk, however offers an opportunity for growth. The amount of risk you are prepared to accept has a direct affect on potential growth. Therefore provided you understand that no risk means little or no return and some risk means some potential growth, everyone is clear and happy.

One of the real contentious issues in Banking today is the issue of the Banker's bonus. Put aside for a moment who "owns" the Banks and understand that Bank have for years, traded our money, and their own and made enormous profits. One area in which they trade is the currency markets and it is a little known fact that each and every day, more currency is traded, than in a month in equities on the New York stock exchange for example. Literally millions are made by the Banks' Traders and their pay is a subject of much controversy, but they are highly specialised, frighteningly intelligent individuals who make their Banks millions in profits.

Were you a "high net worth" individual with say a spare million or two, the Banks would undertake this kind of investment for you too and the returns can be startling, as can their charges, however some time ago, groups formed to take advantage of this kind of trading through collective investment, that is giving mere mortals the opportunity of taking advantage of the opportunities available to the very wealthy by pooling of resources. This investment club is one such group and as an investor, I am benefitting from the kind of investment returns which otherwise wouldn't be available to me.

The three main aspects of club membership are:

1. Investment
2.Compounding of returns
3. Taxation

As regards investment, on behalf of the club, traders trade five main currencies in pairs, however using strict risk management to mitigate risk. One such aspect is "drawdown" which means that only a proportion of the fund is traded at any one time. It is infact a very small proportion of the fund which is in trade at any one time, which bearing in mind the returns the traders achieve is remarkable.

Growth is further achieved by the compounding of each month's return. Albert Einstein once said that compound interest was the eighth wonder of the world and applying compounding to modest monthly returns makes an enormous difference to growth over for example a year.

The third aspect of the club is that the fund is domiciled overseas and as such does not attract taxation, thus eating away growth. A major European Bank is used to handle the money and the combination of active, yet risk managed investment together with the compounding of the monthly returns yields superb returns over the long term. Investors will of course be obligated to inform the tax authorities when funds are repatriated to their country of domicile of course. No one is advocating tax evasion, however whilst the funds are growing for you, for however long you choose to invest for, they will be growing free of tax.

My investment with the club is modest, however the March 2010 return for the funds I invest in were 4.50% and 3.40% giving year to date returns for 2010 of 9.24% and 10.43% resepectively. The returns for 2009 and 2008 for these funds were 35.58% and 40.02% for one fund and 40.15% and 66.28% for the other. I am sure you can see therefore that despite the fact that there is an element of risk, the comparison with a Bank or Building Society deposit is startling.

Mimimum investment requirement are modest, the club membership charge is also modest and there is also an option to become an affiliate or re-seller should it be of interest. However, whether as an investment vehicle for our hard earned cash, or a business opportunity, club membership should be viewed as a long term concept, the thought process being that an element of Bank or Building Society deposits which one has no intention of using for a while, could well be put to good use for the long term.

Should you require further information regarding the club, please do not hesitate to contact me, however let me please reiterate my initial comments that I am proud of my standards and integrity. This is an unregulated area of investment, I am not in a position to make any recomendation. My role as I see it is merely to invite you to take a look at the benefits which membership of the club could offer you. I am however a very satisfied investor, happy with the bona fides of the club and will gladly discuss it with you upon request. The affiliate aspect is particularly attractive in the long term in particular.

Alternatively, you may request additional information from a third party link which is

www.fxdynamite.com/desiredprosperity

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