Scottish Widows OEIC's & Isa

Bikergirl3

Hi,
I'm new to the forum and although I have searched the site I'm sure this questions has already been asked.

Sept 2006 I was persuaded by some friendly guy in Lloyds bank to invest £20,000 in this fund for five years with a promise of not only making up the setup fee in a few months but making a good profit. Alas, I don't think I ever got back to the original amount invested and with the crash, today it stands at £16,700.
I will probably never have this amount of money to save again and don't want to lose anymore.

So the question is........ Do I take the money and run or do I leave it?

Thanks in anticipation of any advice.

jem16

Bikergirl3 wrote: »

Sept 2006 I was persuaded by some friendly guy in Lloyds bank to invest £20,000 in this fund for five years

You don't tell us what the actual fund is and this is the important bit.

Bikergirl3

Hi sorry it's
Momentum Income Portfolio Shareclass A Accumlation ISA & OEIC

Thanks

jem16

Your main problem is that you put £20k into one fund which is poor investing. Your £20k really should have been spread over at least 10 funds matching your risk profile.

However it's a typical investment from a bank.

More discussion on the fund in this thread;
http://forums.moneysavingexpert.com/showthread.html?t=1173817

Bikergirl3

Thank you Jem16 for your reply.
I have read the link you have so kindly provided. I now realise I entered this investment knowing nothing at all about investments. Ignorant and naive I know.
The guy from the bank made it sound such a good investment. The figures he showed me were impressive. I would have been better off if I had put as much as I could in a cash isa. However, athough the FSTE is up at the moment I still don't know if I should leave it in for the remaining three years. But I'm panicking as the media is saying there is worse to come.
Any advice would really be appreciated.
Thanks

dunstonh

The guy from the bank made it sound such a good investment. The figures he showed me were impressive.

It has only been running since August 2004. It has hardly any history. It made 9.30% in year one. 4.8% in year two. -0.43% in year 3 and -5.46% over the last 12 months. It only has 15.1% in UK equities so the performance of the FTSE is going to have limited impact. The fund manager has already changed (March 06). So, it really has no history to speak of.

I would have been better off if I had put as much as I could in a cash isa.

In the short term with hindsight yes. However, in the long term possibly not. Historically investments zig zag and there are periods, usually in the early years, when cash can beat investments.

But I'm panicking as the media is saying there is worse to come.

That doesnt mean the stockmarkets will get worse though. Stockmarkets tend to act in advance of events and assume the worst. You could see the stockmarkets going up whilst the real time scenario appears to be getting worse. The media coverage is quite frankly awful. The degree of scaremongering and playing to everyones fears is disgraceful. You are always going to have a negative view if you rely on the media.

Any advice would really be appreciated.

We cannot give it. The board and those of us authorised to do so cannot give advice on here. Just discussion and comments.

At the moment you are invested in one fund which is a fund of funds reinvesting into other SW and SWIP funds. Its not a good fund. So, if you decide to stay invested, it may be worth investigating alternative funds to build a better fund spread.