The Queen, Sir Alex Ferguson, Liz Hurley and Wayne Rooney, what do they all have in common? They all have investments in horse racing!
Owning a racehorse is not just for the rich and famous, in recent times it has been opened to the novice investor as well.
Investing isn’t for the faint-hearted though. The Racehorse Owners Association (ROA) says that for every £100 outlay (excluding the cost of purchasing the horse) a racehorse owner is likely to see an 80% loss.The ROA estimate it costs £20,000 a year to train a racehorse. If you add race entry fees, veterinary costs and insurance you’re looking at more than the average salary in the UK.
However, purchasing a whole horse and training it usually isn’t the norm for an investment. Instead you can purchase shares via syndicates of partnerships. These schemes allow you to visit training stables, watch your horse exercise and even go in the parade rings.
A horseracing syndicate is any group of people who take a share in a racehorse – and enjoy the thrill of horseracing as a group. Usually the standard investment is between 2.5% and 5% of the value of the horse. You can find listed race horses online and their share value, making it easy to understand how many participants are needed in your syndicate. A typical investment might be around £1,500 for 4% ownership. Get your friends and family involved and it can amount to a payment of £250 each for a group of 6. Horses can earn in excess of £30,000 for winning a small race so imagine the potential of a Grand National winner!
These schemes are open to all, if you have the money to invest. Sites like ownaracehorse.co.uk offer different levels of investment. Other companies include UK based Elite, who have more than 10,000 members paying a yearly fee of £185. For this fee you do not own any of the racehorse itself but you do get a share of any prize money. Not only is there a thrill of watching horses in competition but also the opportunity to win big bucks from horse racing odds too.