Stocks and Shares ISA

SingleSue

Hi everyone, I don't usually drop into these boards (I can usually be found on the House Price crash one) but my parents are wanting some advice.

They have a Co-Op Stocks and Shares ISA, taken out approx 19 months ago with a lump sum of £5000.

They have just received their statement and it is showing that the value of their investment is now £3970.73, which of course has shocked them (they had previously had the same ISA prior to my fathers retirement which performed very well).

Now they are aware that stocks can go up as well as down and just want to know if they should continue on with it or change it over to another product which could give a better return....and if so, which product?

Just for a little extra information, it is not one which is for a fixed term, they are also able to add to and withdraw without penalty.

Afraid that is all the information they have given me but if more is needed, I can always give them a call and ask.

Can anyone help?

Thanks in advance.

dunstonh

ow they are aware that stocks can go up as well as down and just want to know if they should continue on with it or change it over to another product which could give a better return....and if so, which product?

Of course, limiting themselves to a CIS investment isnt a good idea but thats just a side issue to your question. When you invest, you do so for the long term. In the short term you will get periods that go down as well as up. That is what we have now. Quite normal and to be expected. You take the bad years and the good years and average them out.

sons_2

Hi SingleSue, although I can not say whether the Co-op ISA is good or not I would suggest that although it has dropped in value most if not all have dropped in value. I would also say thay have not made a real loss until they withdraw their money, it is only a theoretical loss at the moment. It should recover if left in, investing in this way should be seen as a medium to long term investment, looking at a minimum of 5 years, the shame is that they have potentially invested at the wrong time. I would only pull money out at the moment if you have to, that is not to say that it wont get worse as it may, you can't gaurentee either way.

Do you know which unit Trust fund your parents put their money into?

jebervic

SingleSue wrote: »

Hi everyone, I don't usually drop into these boards (I can usually be found on the House Price crash one) but my parents are wanting some advice.

They have a Co-Op Stocks and Shares ISA, taken out approx 19 months ago with a lump sum of £5000.

They have just received their statement and it is showing that the value of their investment is now £3970.73, which of course has shocked them (they had previously had the same ISA prior to my fathers retirement which performed very well).

Now they are aware that stocks can go up as well as down and just want to know if they should continue on with it or change it over to another product which could give a better return....and if so, which product?

Just for a little extra information, it is not one which is for a fixed term, they are also able to add to and withdraw without penalty.

Afraid that is all the information they have given me but if more is needed, I can always give them a call and ask.

Can anyone help?

Thanks in advance.

Is it a self select ISA ?, (I doubt it) to be honest I am putting as much money as I can get to be put into equities over the next 6 months, I can see another 10-20% downside in the next 6 months, if anyone is smart enough to pile money into the stock market when everyone is despairing and getting out, then I am confident that they will be handsomely rewarded !.

SingleSue

Thanks for all the replies so far.

I doubt very much it is self selecting, they are not that up on things like that so it would probably be something where CIS chooses.

They didn't say what unit trust but then my mum is never very good at finding the info and she wouldn't let me look at the documentation! I think it's an age thing....

I did try to say to them maybe it was one of those schemes which are better left in for the longterm and in fact, when they first had this product it ran for 6 years before being cashed in on dads retirement with a good return. They are aware that a fair amount of charges are taken in the first year.

The crux of the matter is my mum is now in a panic and not sure what to do...keep it in for the longterm in the hope it recovers to near what they put in (or better!) or swap their ISA now especially as mum is now 66 and dad will be 68 (and has already had a heart attack and triple bypass op) next month.

I don't think they have any immediate need for the money as they have other savings, some on a termed basis but you never know when disaster will strike.

sons_2

SingleSue, on the charges front they charge an Initial charge of 5% and then an annual management charge of 1.5%. Ideally I would leave it in. The fund it is in will be stated on their statement.

SingleSue

Thanks sons...now to get my mum to let me look at the statement!

Could be a while before I get back to you on that one....it's a case of slowly slowly with my mum.

sons_2

SingleSue wrote: »

Thanks sons...now to get my mum to let me look at the statement!

Could be a while before I get back to you on that one....it's a case of slowly slowly with my mum.

Glad I could help Sue.

SingleSue

Ok found out which fund it is in:

UK Income with Growth Trust