Which investment account would you pick to put your money into?

Which investment account would you pick to put your money into?

  • An account which guarantees that you will not lose money.

    Votes: 64 57.1%

  • An account which gives you 20% extra money up-front.

    Votes: 16 14.3%

  • An account which charges low fees.

    Votes: 32 28.6%
  • Total voters
    112
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We are debating what is most important to investors. It would be great if you could pick between the three accounts below.

  • An account which guarantees that you will not lose money. With this account, your money is invested in equities, and you are guaranteed to get at least your investment amount back after a specified period. If the market goes up, you win, If it goes down, you will not lose money.
  • An account which gives you 20% extra money up-front. When you invest your money, the fund will immediately add 20% to your investment amount. For example, if you invest R10,000, you will get R12,000 in your account. However, you must stay invested for at least 10 years to get the benefit.
  • An account which charges low fees. With this account, you pay low management fees. Most managers charge between 1% and 2%, but with this account, you will only pay 0.5%.
 
An account which guarantees that you will not lose money
This one will have high fees. You also lose out if the Benchmark had high returns as your return is smoothed.

You only take this one when you are over 75 years old, or if you think the economy will go tits up within a couple of years.

Examples

Guaranteed Solutions Portfolios - Old Mutual Wealth

The Old Mutual Guaranteed Solutions Portfolios offers investors real returns, while reducing the volatility associated with market-linked investments.
www.oldmutual.co.za www.oldmutual.co.za

An account which gives you 20% extra money up-front.
They are giving you nothing

An account which charges low fees.
ETF's and Index funds probably.
Depends on what you are inveting for.



Otherwise better to put it in your bond.
 
None. Except if guaranteeing you will not lose money means after all the fees and things it kept pace with not only the interest rate but cost of living.
 
Low fees are essential. Other than that, the account must let me realize my dream of picking investments that match my macroeconomic outlook and then changing them when I realize that all my painstaking analysis was wrong.
 
None of the above.

Since the world left the gold standard the most important thing is being ahead of true inflation.
 
This is a terribly vague pole.

Relatively speaking, 20% extra money upfront sounds like a great deal for a long-term investment.

It also sounds extremely suspicious despite the 10 year clause.

I would need to do adequate research about what I was investing in, growth prospects, and how the investment institution will be able to recoup the 20% "bonus" paid out over the investment period.

I'd expect that if this were a legitimate institution and not a Ponzi scheme, excessive fees would have to be charged, and the average interest rate would likely be below inflation in order to balance out the additional "bonus" capital.
 
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