My Axa Investment Bonds have went down £2K in 12 weeks, should I cash in?

I have Axa Investment Bonds and got an evaluation and they have gone down £2k in 12 weeks

Thats only about 16% which is about right for the recent drops.

It isnt the bond that has gone down in value. It is the investments within it. AXA have a range of funds (a hundred or so) to cater for all risk profiles.

Property went down a lot in 2007 although it has largely stabalised with just a few small drops recently. Some have called the bottom. I dont think we are there yet but it is not far away in my opinion.

The 5 year plan for them is up now in December 08 so if I do cash in I lose 1%

You cannot withdraw it early. As Axa have put a 6 month period on it you cannot get that money for 6 months. The transaction will be put in a queue and dealt with when inflows have improved (signs suggest that is happening) or 6 months is up.

Investments go down as well as up. You had 4 years of double digit growth and one year of negative. Most investors would be very happy with that.

I'm just not too well experienced in this area and really appreciate your advice.

We all have knowledge in different areas. You should see me try anything manual, like putting a shelf up!!!

Whilst you can do little with the property fund, you could look at the other funds and fund switch if required. AXA have no charge on switching and have a very good range.

Also, you need to be aware that this bond does not mature. It is open ended. The exit charges go down to zero after 5 years and the establishment charge (an extra charge made for first 3-5 years depending on what version of the bond you have) also ceases. So you dont take the money out unless you need it. There should be a enough funds for you to pick a decent spread to suit your risk profile with the remainder.