The fifth of November 2008 is a day I will remember for some time. Now I know what you’re thinking, that’s the day a few centuries ago when a certain Mr Fawkes decided to try & blow up the powers that be, right? Or maybe that I went to a rather spectacular fireworks display? Neither of these were the case in this instance. That morning at around 10am our Ambulance Trading investment opportunity was emailed to one of our partner’s databases. I can remember telling my colleagues that I will be happy if we can generate 15-20 enquiries – after all, enquiry levels must be down as we prepared to head into recession.

After the eightieth enquiry had landed in my inbox just after 6pm you could say I had encountered my busiest day yet at Discover And Invest! Over the course of the following few days more filtered through ensuring that yours truly was putting in some seriously long hours!

Amongst this number was a variance in terms of quality, from those who were too afraid to hold a conversation over the phone to those who invested. In between were all extremes; those whose level of liquidity fell below the entry level, those who had no real interest, those who absorbed the information never to be heard from again, agents sniffing around and those who I simply could not contact! As all the enquiries are submitted in the same format, it’s impossible to gauge the level of quality until contact is established.

Investing is very similar in this respect. There are still so many opportunities out there ranging from property to bonds to shares to alternatives etc. How does one accurately appraise each individual opportunity? Which ones are most likely to do what they say on the tin and provide the promised returns? Which ones are the scams? Which ones are the big gambles?

Whilst there are no blueprints for what’s good and what isn’t, it’s fair to say that the usual rules apply. Over the course of sifting through the enquiries I received, the level of questioning was considerably higher than I expected – good! This goes to show that investors are doing their research, it shows that they are familiarising themselves with the workings of the opportunity, and it shows that where applicable they are using their experiences –both good and bad – to base their decision as to whether or not to take it further. Whilst this continues to be the case, those marketing the decent secure opportunities are certain to prosper.

We’ve all heard the term “short term investments for long term gain” over the years, and particularly within the money markets. Often investors are attracted by the ability to reap their returns in shorter space of time, although in almost every case the risks are greater. Typically minerals such as gold and silver would feature popularly due to their rapid nature of rate changes, thus once the price had been deemed to hit a ‘low’ it would be worth a gamble to invest and hope for the rise.

In finance terms a short term investment can be anything up to as much as ten years, although in more recent times it is referred to as a significantly shorter period, particularly when related to property. Alternative investment opportunities are now becoming more prominent in today’s marketplace too and can contain some very left field subject matter.

Whilst it is difficult to assess which ones are right & wrong, like everything an investment is just that, risk is always involved no matter how solid the security. Take the Ambulance Trading opportunity for example. It provides 10% return in just 90 days, is recession-proof and impeccably secure which is virtually unheard of. The response to the scheme was understandably phenomenal and the take-up was certainly encouraging, although a fair percentage chose not to proceed due to what small risks remained, choosing to wait until 3-4 months down the line. These people will have missed the boat when the door closes but that’s the beauty of this type of opportunity – you snooze you lose!

But are these types of short term investments right for everyone?  I think a better way to address that question is to instead ask what type of investors might be attracted to these kind of opportunities and why? Firstly I would look at time sensitive factors, in particularly the current economic climate. Take bonds for example & their all time low prize funds. They have now introduced a new £25 minimum prize, thus structuring it so you’re likely to win less but more often – not good enough for many. Take looming redundancies in the financial sectors. Many individuals with high levels of savings can live off the short term returns whilst they reassess their futures. Also take those with the funds to purchase property but are reluctant to do so. These opportunities provide them with a means of watching their money grow whilst they wait for the right time to buy.

With this in mind, from a business perspective it’s great to have a successful & proven short term product to offer, but the fact of the matter is that they are not right for everyone at any given time. Therefore it’s wise to diversify and bring to market a short range of products with varying lengths and genres – something Discover And Invest will endeavour to pursue during the oncoming quarter.