Natwest Investment Fund ISA

RaggedTrouser

After investing £4100 in the aforementioned ISA, over the last 2 years, today my current cash in value is only £2932. Should I continue investing £100 per month as I presently do, reduce the payments to say £50 or cease altogether and see what happens? I would be very grateful for any impartial advice on this matter.

oldfella

I would suggest there are better places to invest than a Natwest fund - but if you can spare the money I would keep investing. Eventually the market will go up.

dunstonh

You are now buying units 40% cheaper than their high point (making assumptions on the investments as you dont mention what investment fund you have, just the tax wrapper).

Events like these occur on average once every 7 years so every investor should expect them periodically. No-one enjoys it when they come (last one was 2001-2) but when you have been through a few it gets easier. You should just keep going on the regular and buy those cheaper units.

You may also want to look at the investments as Natwest dont exactly have a good range of options.

RaggedTrouser

It is a Stocks and Shares ISA and at the moment I can afford £100 monthly payments. Should I even consider increasing the amount I currently invest?

dunstonh

It's up to you. Its a risk based investment and when you invest you look at potential. For the long term, the potential looks very good given the low prices. In the short term it will remain volatile (which for monthly payments isnt a bad thing). If you do increase then perhaps use a different sector to make sure you diversify.

alchemistkevin

If you can afford it, keep it going. The market is low now and although it might go lower, you're averaging and it will go up sooner or later, the savings here might be worth more than current/savings accounts returns as they're in a tax free wrapper and with interest rates poised to go down, any savings outside of this type of investments will have a poorer rate of return too.

Granted this is all speculative but you already knew that when you started putting money in, right?

RaggedTrouser

I did know it was speculative with a bit of risk but I didn't envisage such a huge loss so quickly (huge for me anyway). Thanks everyone for your thoughts and advice. I do have further queries regarding NS&I Savings Certificates but that's a subject for another thread.

Blah99

RaggedTrouser wrote: »

It is a Stocks and Shares ISA and at the moment I can afford £100 monthly payments. Should I even consider increasing the amount I currently invest?

Be aware that Natwest have recently switched to using RBS managed funds, and are running down their old ISA funds. They're not communicating this to customers though. Call your Natwest investment advisor and ask him about switching to the new funds - they waive the initial charges, and there are better options...

aqueoushumour01

good prices at the mo although you need to be prepared to take the volatility. i invested in a stocks and shares isa a few days ago and am already down 9% but it's a long term investment so I need to learn to ignore the short term movements - not easy I know

aqueoushumour01

aqueoushumour01 wrote: »

good prices at the mo although you need to be prepared to take the volatility. i invested in a stocks and shares isa a few days ago and am already down 9% but it's a long term investment so I need to learn to ignore the short term movements - not easy I know

make that another 9% down on top. :mad:

alchemistkevin

aqueoushumour01 wrote: »

make that another 9% down on top. :mad:

longer term investment