OEIC Not Doing So Good

philot

I just wanted to find out if anyone else is concerned about their OEIC. I have seen mine plummet of the last few weeks. It's actually dropped over a thousand pounds since I started it.I did invest for the medium/long term but I'm concerned at such a dramatic fall. Should I be patient and ride out the storm or am I best pulling the plug before it all dwindles away.

Your comments please.....

thrupence

philot wrote: »

I just wanted to find out if anyone else is concerned about their OEIC. I have seen mine plummet of the last few weeks. It's actually dropped over a thousand pounds since I started it.I did invest for the medium/long term but I'm concerned at such a dramatic fall. Should I be patient and ride out the storm or am I best pulling the plug before it all dwindles away.

Your comments please.....

Most things are falling. Some things are rising.

No one can give any suggestions unless they know what you're invested in.

What is your fund called?

dunstonh

You dont say what the investment is. Just the tax wrapper (or unwrapped in the case of OEICs).

There are over 2000 UT/OEICs. They cover a whole risk range and a wide range of investment areas.

nrsql

Yep - you'd have done a lot better in a savings account (or gold ).
But that's not the issue - no point at looking at what's happened you need to guess what's going to happen.

Big mistake to sell now if it recovers by a similar amount in the next few weeks - but a good choice if it goes down again.

Unfortunately no one can tell what's going to happen. Could be in for decades of relative flatness in the market or could take off by the end of the year - I doubt both of those but they're not that improbable.

As to medium/long term - decide what you mean by that. It usually is meant to mean covering more than one economic cycle so you recover from the big dip - but this one could easily be a lot longer. I wouldn't bet on 10 years being enough to not show a loss on a lot of start points.

gozomark

Is 1000 a large or small proportion of your initial investment ?

jon3001

philot wrote: »

I did invest for the medium/long term but I'm concerned at such a dramatic fall.

Why the concern? Do you need the money now? You say it's for the medium/long term...

Didn't you realise that risky investment are subject to potential capital losses before you invested?

philot

I did understand the risk of losses and am in it for the medium / long term (5-10yrs). I think my main concern was the dramatic drop it showed in such a short time. I was advised by my provider that I was investing at the right time and thatthe outlook was positive as the market was on it's knees, I invested in a balanced portfolio and was advised that the only likely direction was for it to improve, this was about a year ago. I've recently checked my policy and it is once again showing signs of improvement. Think I probably need to be more patient.

Lokolo

Thats the spirit! :T

nrsql

philot wrote: »

I did understand the risk of losses and am in it for the medium / long term (5-10yrs). I think my main concern was the dramatic drop it showed in such a short time. I was advised by my provider that I was investing at the right time and thatthe outlook was positive as the market was on it's knees, I invested in a balanced portfolio and was advised that the only likely direction was for it to improve, this was about a year ago. I've recently checked my policy and it is once again showing signs of improvement. Think I probably need to be more patient.

You can always justify investing - must admit someone saying the market was on it's knees a year ago is a bit odd though.
More likely statements are that it's a mistake to try to time the market or it's a better time to invest than 6 months ago.
Bear in mind that your provider has a vested interest in getting you to invest.

Personally I think the market recovery is going to be very slow and now is not the time to be investing lump sums. I've always been correct about what's going to happen just not always in the right year .