Stocks and shares ISA

vix11_2

So I been going for a couple of years and was happy to see an average return and decided to continue. However like most people who don't know much about this I am now freaking out. Last month I was down £500 under my total investment and today its a little over £2000.

Basically I'm with Halifax and they make this chart of risk and I opted to go for the top and risk it with the Adventurous fund.

I guess what what I want to know know is should I keep it as it is and risk it in hope for it to pick up and be back in profit in a good 5-10 odd years time or should I retreat into the cautious fund for the moment where my investment is more or less protected and the investments are very less risky and so less return if any.

I can see others are making a go of it especially as the markets are down making it great for investing in hope of things picking up later (I know this and my adviser said it as well, in fact she said keep it as it is last month and this month I'm down three times as much as was last month!)

I don't mind some risk but say I loose it all I'm going to be *$%£^&*"£!!! and I'll have to rely on new funds to make up for what I lost wouldn't I?

So anyway What do you reckon? Stay at adventurous and risk loosing all (theres not much there as it's only been a couple of years!). or am I better off changing to invest in cautious funds (there are also medium ones as well).

Thanx.

tweet

If you're in a fund to lose it all you'd have to have 100s of companies around the globe see their share prices go to zero. Which isn't going to happen. Sure, they may all be down now but in 5, 10 years time they'll *most likely* be back.
If you go into a cautious fund now you'll most likely lose out on the bigger upturn in the markets over the next 10 years - take a big fall then climb up a bit! Personally I'm young-ish and think it's just a tremendous buying opportunity for funds.

triplea35

I am also new to share ISA'a but think the time might be right to have a punt. Can I ask:
1.As i already have cash Isa's this year will there be any problem with opening a share isa with a different service provider.
2.I am thinking of the L & G UK Index Tracker. I am correct in thinking that I would get a tax free dividend yield ( currently 5.3%) in addition to any capital gains/losses.

dunstonh

1.As i already have cash Isa's this year will there be any problem with opening a share isa with a different service provider.

No. The Share ISA is independent from the cash ISA as far as provider goes. Its only the annual allowance where there is some overlap.

2.I am thinking of the L & G UK Index Tracker. I am correct in thinking that I would get a tax free dividend yield ( currently 5.3%) in addition to any capital gains/losses.

Thats a medium/high risk fund (potential of 50% losses in a 12 month period) and a consistent mid table performer. The dividends are paid with no further tax liability. Not strictly tax free but no tax to pay on your part.