Should I stay put or cut my losses now?

billy_bulldog

My unit trust investment ISA value has fallen in the past few months from 145p per unit down to about 75p. It's been running for 3 years and at its peak earlier this year had a return of approximately 30% over and above my deposits. Obviously my monthly contribution buys me more units now, but do I stop investing and wait for the value to rise and recoup my initial investment, or is it prudent to actually keep feeding this account further? I do realise that I am in this for the longer term and am really looking at another couple of years for things to start to pick up aren't I?

Thank you in advance for any comments or views on this.

opinions4u

Do companies sell their goods at the lowest possible price? Or do they try to get the best possible price that they can?

If you bail out now, you are crystalising your loss.

If you hang on in there, and 'now' is near the bottom of the market, you should then see the value recover. But I don't know when the bottom of the market is any more than the next man.

Many so called experts are saying now may be an excellent time to save monthly in to stock market linked funds. Time will tell us if they're right.

If you have a substantial fund, I'd suggest seeing a couple of IFAs to discuss alternative options.

billy_bulldog

I understand that I may be locking in my losses, and I know nobody 'knows' the answer about which way things might go, just interested to hear views on whether or not it still has further to fall yet.

One school of thought that was mentioned to me was to actually invest more money now, as the unit prices are so low. Seems I am (well, we all are) damned if I do and damned if I don't.

BTW we're only talking about a small fund worth circa £1000.

aqueoushumour01

if it were me i'd keep feeding it as long as you're in it for the long term and don't need the money any time soon