Stocks and Shares ISA

davidqu · 10 July 2013 at 8:30AM

Hi was looking for some advise.

I currently have 5500 in a stocks and shares isa, I've had it for 18 months now, I got my 6 monthly statement in and it's now starting to see some decent return, it made 7% in the 6 months between statements.

It took a while to make some cash after the fees you have to pay, I'm thinking in putting another 5,500 into it but heard from somebody in work that they wouldn't touch a s&s isa just now due to markets, I don't know where he's getting his info but do anybody on hear advise against putting another 5,500 into it

Many thanks in advance

dunstonh · 10 July 2013 at 8:58AM

I'm thinking in putting another 5,500 into it but heard from somebody in work that they wouldn't touch a s&s isa just now due to markets, I don't know where he's getting his info but do anybody on hear advise against putting another 5,500 into it

The workplace is typically one of the worst place to get opinions. Workplace myths can be very damaging. Especially if you have a someone that thinks they know everything but actually knows nothing.

Nobody can predict the future. You know investments will go down as well as up and at times there will be major declines and major growth periods. You just dont know when.

You actually havent said how you are invested. So, we dont know what markets you are referring to. Did this person at work know your investments before making that comment? Did they elaborate as to why they feel that way?

pqrdef · 10 July 2013 at 9:17AM

Depends entirely on what you're invested in. A tracker fund rises and falls with the markets. The only price that matters is the price you cash in at. No use looking at gains on half-year statements, they can disappear a fortnight later. It's not like having interest credited to a savings account.

A managed fund should make some sort of attempt to lock in gains by buying and selling at the right time. If only.

But Ben Bernanke does a bit of thinking aloud and knocks 800 points off the Footsie. Then Mark Carney gets a bus to work and the Footsie is up 400. You need a lot of faith to be in the markets at present, because frankly nobody has any idea where the world is going or what anything is worth.

The only thing that's predictable is that somebody will turn out to have been right.

Drother · 14 July 2013 at 5:39PM

I was in a similar position last year, took the plunge, after the initial 3% fee this year it's all about really getting my fee back with hopefully a minor profit, until 2 weeks ago it was earning about 5% but the interest earned virtually vanished......latest is it's clawed back a bit, but I'm not looking to at this moment use my allowance this year as the market as you say has rebounded on the back of a couple of statements....stock market a bit high again.......but as everyone says it's long term

dunstonh · 14 July 2013 at 5:54PM

until 2 weeks ago it was earning about 5% but the interest earned virtually vanished.

Unless you are in fixed interest bonds there is no interest. The timescale you mention sounds more like equities which have recently suffered around a 15% loss but have recovered some of that since.

but I'm not looking to at this moment use my allowance this year as the market as you say has rebounded on the back of a couple of statements....stock market a bit high again

High compared to what?

Stocks and Shares ISA

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