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AXA Distribution bonds
philspad
Posts: 6 Forumite
In 1995 I invested £30000 in a distribution bond with AXA which I was told by my financial advisor was low risk.
recently a phone call has revealed to me that it is now "adventurous" and since the beginning of October has lost £9000.
Should I have been informed of the change in risk and is now the time to cash in????
recently a phone call has revealed to me that it is now "adventurous" and since the beginning of October has lost £9000.
Should I have been informed of the change in risk and is now the time to cash in????
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Comments
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Lost £9000 from...?
And no idea about him contacting you, no idea how it works.0 -
AXAs distribution fund is still showing as balanced on their own risk sheet. So, whoever told you that is not telling you correct information.
Distibution funds themselves can range from cautious through to adventurous depending on the provider and the fund aims and objectives. Doing an independent risk scattergraph of all funds in the distribution sector, the AXA fund comes out just below sector average in risk. This means its no more riskier or less riskier than the sector average.
The AXA distribution fund from peak to close on Friday last week has lost 16.74%. Since 1995 (assuming 1/1/95) you would have had 115.4% growth.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
In 1995 I invested £30000 in a distribution bond with AXA which I was told by my financial advisor was low risk.
recently a phone call has revealed to me that it is now "adventurous" and since the beginning of October has lost £9000.
Its not Towry Law thats advising you now is it?0 -
In the middle of September it was valued at £48k but this week it was only £37k. I take £1,500 as a regular income each March. I have been taking this income for a few years now. I am worried that if it keeps going down I will start eating into my original capital.
Should I now cash in and know that the capital is secure?????0 -
No its not Towry Law thats advising me. I've not heard from my financial advisor for 7 years0
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In the middle of September it was valued at £48k but this week it was only £37k. I take £1,500 as a regular income each March. I have been taking this income for a few years now. I am worried that if it keeps going down I will start eating into my original capital.
Should I now cash in and know that the capital is secure?
Many distribution funds have dropped in value this year. The AXA Distribution fund has actually fared better than most: down 14.40% in the past year compared with, for example, -19.50% for the Standard Life Distribution fund.
It is worth remembering that these losses are just "paper", until you sell all or part of your fund. It may therefore be worth considering whether you think the markets are likely to recover.
In any case, if you are not relying on the income from your fund, it may be worthwhile stopping withdrawals in order to prevent capital erosion.For the avoidance of doubt: I work for an IFA.0 -
Should I now cash in and know that the capital is secure?????
You will suffer penalties for doing that. There are however many funds on those bonds so you could adjust your risk rating. However, doing it after a drop can mean you miss out on recovery and end up pulling out at the wrong time. Only to go back in later after its gone up, just in time for the next drop.....I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
In 1995 I invested £30000 in a distribution bond with AXA which I was told by my financial advisor was low risk.
recently a phone call has revealed to me that it is now "adventurous" and since the beginning of October has lost £9000.
Should I have been informed of the change in risk and is now the time to cash in????
Maybe this link will help to clear up the confusion ....
http://www.citywire.co.uk/adviser/-/news/collective-investments/content.aspx?ID=320258&Page=1
We invested in 1996 in the AXA Distribution Inc R managed by Richard Marwood, no money has been taken from it, I can't wait for the next statement to arrive :rolleyes: but will stick with it for ..... ? well until things improve. No adviser seen here either philspad since 1996.0 -
You will suffer penalties for doing that. There are however many funds on those bonds so you could adjust your risk rating. However, doing it after a drop can mean you miss out on recovery and end up pulling out at the wrong time. Only to go back in later after its gone up, just in time for the next drop.....
Penalties? The bond has been going since 1995. Can you just clairify what you mean dh?0 -
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