Hold or sell now??
Discussion
What effect do you think Brexit will have?
We invested £7k in a fund 20 years ago recommended by our bank. They subsequently sold it to another company and during this period it's been down to £3.5k and has now crawled up to £10k. Of course every year we get their little book telling us how well they're doing but ignoring that it's us investors who are taking the hit, but I digress.
We're retired and don't have any borrowings and likewise not much in the way of investments or saving, about £30k so couldn't afford to lose this £10k.
So here's the Q. Sell or hold on till after Brexit (sorry to use the B word). We're not desperate for the cash right now but who knows what may happen?
We invested £7k in a fund 20 years ago recommended by our bank. They subsequently sold it to another company and during this period it's been down to £3.5k and has now crawled up to £10k. Of course every year we get their little book telling us how well they're doing but ignoring that it's us investors who are taking the hit, but I digress.
We're retired and don't have any borrowings and likewise not much in the way of investments or saving, about £30k so couldn't afford to lose this £10k.
So here's the Q. Sell or hold on till after Brexit (sorry to use the B word). We're not desperate for the cash right now but who knows what may happen?
ColinM50 said:
What effect do you think Brexit will have?
We invested £7k in a fund 20 years ago recommended by our bank. They subsequently sold it to another company and during this period it's been down to £3.5k and has now crawled up to £10k. Of course every year we get their little book telling us how well they're doing but ignoring that it's us investors who are taking the hit, but I digress.
We're retired and don't have any borrowings and likewise not much in the way of investments or saving, about £30k so couldn't afford to lose this £10k.
So here's the Q. Sell or hold on till after Brexit (sorry to use the B word). We're not desperate for the cash right now but who knows what may happen?
Aside from the fact that that is pretty awful performance over a 20yr period, if you really can't afford to lose some of the 10k, sell & put it in the bank. Truth is nobody really knows what will happen, but at least you will still have the full 10k.We invested £7k in a fund 20 years ago recommended by our bank. They subsequently sold it to another company and during this period it's been down to £3.5k and has now crawled up to £10k. Of course every year we get their little book telling us how well they're doing but ignoring that it's us investors who are taking the hit, but I digress.
We're retired and don't have any borrowings and likewise not much in the way of investments or saving, about £30k so couldn't afford to lose this £10k.
So here's the Q. Sell or hold on till after Brexit (sorry to use the B word). We're not desperate for the cash right now but who knows what may happen?
Slightly different way of thinking....
If someone offered you the opportunity today, to invest £10k into the fund, would you ?
By holding it, you are in a sense choosing to invest in it, therefore if the answer to the above is 'no you wouldn't invest today' - then I would suggest you cash out.
If someone offered you the opportunity today, to invest £10k into the fund, would you ?
By holding it, you are in a sense choosing to invest in it, therefore if the answer to the above is 'no you wouldn't invest today' - then I would suggest you cash out.
Setting aside the fact that the most likely implication of Brexit could be a further fall in the pound, and this is highly likely to push up the value of the FTSE, if it is money you can't afford to lose then you shouldn't be investing it in the markets.
So I am with the cash route unless you were comfortable with something like index linked gilts.
So I am with the cash route unless you were comfortable with something like index linked gilts.
ColinM50 said:
We invested £7k in a fund 20 years ago recommended by our bank. .....during this period it's been down to £3.5k and has now crawled up to £10k.
There's no easy way for you to hear this - but that fund has been a spectacularly poor investment.UK inflation has averaged 2.8% between 1998 and 2018 meaning that to even get back where you started you would need £12,000 today.
Part of the problem is likely to be bursting of the dot-com bubble at the end of 1999. But only part of the problem...
Spend some time looking at this finance forum, it's full of useful tips. The Intelligent Money thread which sits at/near the top of the index is a good place to start.
I'd say put in cash or premium bonds.
The upside is never going to change your life and the downside if it fell is your safety net is gone.
The advice is based on you being retired and therefore a little older than most, and to be discussing this level of investment hints to you not sitting on a big portfolio of other investments.
The upside is never going to change your life and the downside if it fell is your safety net is gone.
The advice is based on you being retired and therefore a little older than most, and to be discussing this level of investment hints to you not sitting on a big portfolio of other investments.
The good news Colin, is that you only put £7,000 into the fund. What a dreadful performance. Very unfortunate that your investment began in 1999. The stock market bubble was about to burst.
Any stock market investor or fund manager with a 'feeling' for the market in 1999, could so easily spot that the frenzy for fledgling technology companies with sky high valuations and zero profits, was going to end in tears. There was an outbreak of 'follow the herd' with clients money. In fact such was the enthusiasm, that rock solid big long-standing profitable firms, were completely out of favour with investors. Consequently, their share prices became very low, but in March 2003 the tables turned and everyone sudenly wanted 'blue chip' shares again. Those share price rises were then quite rapid.
The 100 index peak in 1999 was 6950.
It took until 2015 before that peak was exceeded.
Even so, dividends should have been added to your fund, on top of any relationship it happened to have that index rise.
The answer to your question is that nobody knows, but I would not have any confidence at all in your fund managers, after their hopeless efforts during the past 20 years.
Inflation adjusted you have lost about £1000 as you stand now.
Over a 20 year period even with very modest returns I would expect you to have doubled your money at the very least.
If it were me I would sell now and look to put the money into something you can manage yourself. Probably a S&S ISA, if it were me.
Your requirements might be different.
Over a 20 year period even with very modest returns I would expect you to have doubled your money at the very least.
If it were me I would sell now and look to put the money into something you can manage yourself. Probably a S&S ISA, if it were me.
Your requirements might be different.
Absolutely agree with everyone else re: sell now, and if you haven't done so, I mean right now!. It isn't going to get any better.
Could you kindly provide details of the fund e.g. fund name, fund identification code, fund fees (percentages), etc, for educational purposes if nothing else. Others can then advise you of other funds with objectives that better match your requirements, certainly better fees and performance!
Whether or not you should re-invest the £10k depends on your timescales for requiring the cash.
Good lord! Is the CAGR for this fund really c1.8%!?
Could you kindly provide details of the fund e.g. fund name, fund identification code, fund fees (percentages), etc, for educational purposes if nothing else. Others can then advise you of other funds with objectives that better match your requirements, certainly better fees and performance!
Whether or not you should re-invest the £10k depends on your timescales for requiring the cash.
Good lord! Is the CAGR for this fund really c1.8%!?
Edited by putonghua73 on Thursday 29th August 11:56
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