My first dip into Stocks and Shares has turned sour

cheerfulcat

That's OK, echidnas are allowed to be prickly...

DocProc

Here's a performance page for this fund:

http://www.citywire.co.uk/adviser/fund-performance/fund-factsheet.aspx?FundID=8906

It doesn't look to be doing too badly, so I'd advise holding on for the longer term - which is surely your original idea?

Hungerdunger

dunstonh wrote: »

Thats because it is true. Historically, equities have out performed cash over the long term.

Does that include Japan?

dunstonh

Hungerdunger wrote: »

Does that include Japan?

Not in the last 20 years no. However, you wont find many that invest 100% in japan. Although Japan has proven useful for portfolios that are regulary rebalanced.

Annakavana

Well I invested £5000 with Abbey in the Year 2000, it never went up much so I left it in, a month ago it was worth £5150, now it is worth £4700 so I'm gutted. My mistake was to invest with this particular bank as they don't know how to invest customers money properly unlike Invesco Perpetual who has done well for me.

jamesd

1echidna wrote: »

I think your right but that is because the stock market and its acolytes carry more firepower than savers who get shafted in a downturn. The BoE has the power to ensure a somewhat more balanced sharing of pain, maybe they will, because penalising the thrifty and cautious has long term consequences in the way people behave.

With Northern Rock the stock market shareholders lost all or almost all of their money. The savers lost none of theirs.

It's called a risk premium. Savers below the compensation limit aren't risking losing their money. Shareholders are and they get paid for taking that extra risk with higher overall returns over time. No extra reward for taking the higher risk and they would just be savers instead because that would have the same reward but lower risk.

It's a standard bit of investing theory: the greater the risk you're willing to take, the greater the potential return needs to be to make it worth taking that extra risk.

The BoE has no power to affect this until it starts ordering people to invest against their own interests.

1echidna

jamesd wrote: »

With Northern Rock the stock market shareholders lost all or almost all of their money. The savers lost none of theirs.

It's called a risk premium. Savers below the compensation limit aren't risking losing their money. Shareholders are and they get paid for taking that extra risk with higher overall returns over time. No extra reward for taking the higher risk and they would just be savers instead because that would have the same reward but lower risk.

It's a standard bit of investing theory: the greater the risk you're willing to take, the greater the potential return needs to be to make it worth taking that extra risk.

The BoE has no power to affect this until it starts ordering people to invest against their own interests.

Thanks, the theory about risk/reward is clear and farely obvious but isn't the BoEs remit to keep interest rates high to fight inflation clear. It is low interest rates and high inflation which particular damages savers. I know that our present inflation is caused by outside factors but it is obvious that there is always pressure on the BoE to lower rates from some quarters.

gil13

If it helps, I also did the quidco click through for the L&G offer (I did manage to get the cashback, after a wait mind) but I just set up a 50PM S/O, I don't think you had to invest a lump sum. I would go along with what others have said and in such markets you are best to drip-feed cash in, you will find hopefully that you will get back to break even a bit quicker. Give it a couple of years and see what's happening. You could perhaps look at other managed funds rahter than index trackers, how about Blackrock UK Alpha, which claims to make money both short and long, so far it has.

1echidna

Thanks gil13, I have my S & S ISA for this year. I am diversifying somewhat out of a predominance of savings into funds. It seems simpler for me to do this in discrete packages as market conditions seem right and I have time to research/consider what I am doing. Not sure about Blackrock Alpha, maybe a hard act to keep up.

mark1234567890

Thank you for all of your wonderful replys guys. :j

Sorry it has taken so long for me to get back to you.

I have read each post and agree what has been said. I probably have invested above my risk profile.

However I am going to stick it out - as has been said we are in it for the long term.

I will post in 5 years time and let you know where I stand. :money:

All the best