i don't think there is an issue with it being profitable so long...

  1. 17,184 Posts.
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    i don't think there is an issue with it being profitable so long as you stick to buying above SPP price & selling ASAP.

    The risk is basically a 2-3 week window vs a permanent risk re holding the market.
    I'd see the main problem being a volatile market rather than a bear market, in a bear market companies will just stop doing SPP unless they are desperate. In which case the price will be heavily discounted.

    As for the actual returns, without the mngt fees there is no pressure to invest in SPP.
    Excess cash can be withdrawn at any time.
    And for the number of SPP per year it makes no difference if you invest in 6 @ 2.0% return, 4 @ 3% return or 2 @ 6% return you're still going to make a great return for a pretty much passive investment.

    In the last 18 months there have been an exceptional number of SPP due to the rising market & a need for capital, that won't last.
    So I working on 1 SPP every 2 months as a benchmark with maybe a 3% average return or 18% p.a. for my IG SPP but currently I only have 161 shares.
    At the moment just waiting for 1 to test out the IG service level.
 
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