Anyone in "no loss" funds? - DFWstangs Forums
 
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post #1 of 13 (permalink) Old 04-13-2009, 09:50 PM Thread Starter
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Anyone in "no loss" funds?

Curious to know if anyone is currently in, or heard of, no loss funds as an investment option. Basically, you don't lose any of your money you put in, but your upside would be capped at a certain percentage, say 15%.

If you had $50M to put into the fund, you wouldn't lose any of that $50M, but your upside gain would be limited to $7,500, 15% on your investment. Of course, there are fees involved with this investment. Would you find this type of setup attractive?
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post #2 of 13 (permalink) Old 04-13-2009, 09:54 PM
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You mean 50k right?

From what i know of the No Loss funds ( which is little), you are guaranteed not to lose money, given that you stay in it for a certain period of time (3,5 yrs)
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post #3 of 13 (permalink) Old 04-13-2009, 09:55 PM Thread Starter
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Originally Posted by sc281_99-0135 View Post
You mean 50k right?
Yes, M is thousands in the Finance world, MM is million. My apologies, just what I'm used to.
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post #4 of 13 (permalink) Old 04-13-2009, 09:56 PM
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Sounds too good to be true, honestly. No risk, whatsoever?

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post #5 of 13 (permalink) Old 04-13-2009, 09:56 PM
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Yes, M is thousands in the Finance world, MM is million. My apologies, just what I'm used to.
My bad.
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post #6 of 13 (permalink) Old 04-13-2009, 09:57 PM Thread Starter
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Sounds too good to be true, honestly. No risk, whatsoever?
Sure, they're out there. Upside loss is the risk. If the market goes up 30%, you lose out on the 15% upside with your gains being capped at 15%.
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post #7 of 13 (permalink) Old 04-13-2009, 09:59 PM
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Yes, M is thousands in the Finance world, MM is million. My apologies, just what I'm used to.
Basically what you're saying is that financial people don't know how to do math? Maybe that's what got us in this mess?



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post #8 of 13 (permalink) Old 04-13-2009, 10:02 PM
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A big part of it would be who is making the guarantee. That would determine my interest.

And of course these funds are being promoted right now, given the state of the market.
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post #9 of 13 (permalink) Old 04-13-2009, 10:04 PM Thread Starter
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Basically what you're saying is that financial people don't know how to do math? Maybe that's what got us in this mess?
Lol, I believe it goes back to Roman Numerals. If you were in the Finance industry and put on your resume that you managed risk for $50M, employers would think, "Who gives a shit?"
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post #10 of 13 (permalink) Old 04-13-2009, 10:05 PM Thread Starter
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Sounds too good to be true, honestly. No risk, whatsoever?
I should also say that risk lies in the opportunity cost of investing that $50 thousand in treasuries, which is the closest you should ever hear anyone in investments relating to "guaranteed."
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post #11 of 13 (permalink) Old 04-13-2009, 10:10 PM Thread Starter
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Originally Posted by sc281_99-0135 View Post
You mean 50k right?

From what i know of the No Loss funds ( which is little), you are guaranteed not to lose money, given that you stay in it for a certain period of time (3,5 yrs)
Yes, this is what I was looking for. That's the way I understand it as well.
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post #12 of 13 (permalink) Old 04-13-2009, 10:20 PM
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Sure, they're out there. Upside loss is the risk. If the market goes up 30%, you lose out on the 15% upside with your gains being capped at 15%.
Right, I see that part. Personally I would not consider that 15% a loss. When it comes to investing I try not to what-if myself too much. 15% gain is a gain, who cares if you could have made 30%. Take your win and make a better call next time.

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I should also say that risk lies in the opportunity cost of investing that $50 thousand in treasuries, which is the closest you should ever hear anyone in investments relating to "guaranteed."
I am wondering if these type of investments would be popular right now because those offering them are prospecting that the "30%" is coming in the next year or so, and the average investor would kill for the "15%" right now after seeing their investments tank. About a year and a half ago would have been the time to do this!

Who offers these, I would like to read about some real-life options. Are they timed like a CD? How is price determined? ect...

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post #13 of 13 (permalink) Old 04-13-2009, 10:25 PM Thread Starter
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Right, I see that part. Personally I would not consider that 15% a loss. When it comes to investing I try not to what-if myself too much. 15% gain is a gain, who cares if you could have made 30%. Take your win and make a better call next time.


I am wondering if these type of investments would be popular right now because those offering them are prospecting that the "30%" is coming in the next year or so, and the average investor would kill for the "15%" right now after seeing their investments tank. About a year and a half ago would have been the time to do this!

Who offers these, I would like to read about some real-life options. Are they timed like a CD? How is price determined? ect...

I think these have been around for a while now. Honestly, I need to find more details to be sure (like that 3 or 5 year minimum commitment).
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