I come from a sound background. I have almost everything that one needs, may be more but I still have the urge to earn more. Everyone wants to earn more. It is our hard earned money and we want this to grow. It is supposed to give us the pleasures that we earned it for. However sometimes we are not able to do it.
Almost a decade, there came an opportunity by a Sovereign Bank saying that all we need to give is 10% equity and banks would give 10X leverage. The net return was a risk free 15%- 20% per annum. I was so excited that I approached almost all banks to avail this opportunity but sadly, all banks passed on this opportunity to their Private bank divisions where minimum requirement was liquid assets of USD1mn. Now I have everything I need but not USD1mn in cash. I never got to get that opportunity. Why should I be denied the opportunity to make money???
We invest money in funds which charge anywhere between 1% to 2.5%. I think it is fair but then there should be some performance parameter as well. As soon as you put performance parameters, fee goes up to 10%. Funny, isn't it.
Six months back my banker called me and said why don't you invest in a debt fund and i will give you leverage on that fund which can be used to buy more of that fund. I asked him about the fund, the cost of leverage and dividend that fund gives. I realized that in five years I would have earned about 1.5% per annum. This is after taking the risk of leverage. What kind of opportunity is this?
I have the right to make money and I should try hard to do it.
Do you think, you have the right to make money? Have you come across such instances where you were denied an opportunity because you did not fit well in the Elite club of wealthy people?
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