Virgin Tracker ISA - cash in the profit and run?

simbux

I opened a Virgin Stocks & Shares Tracker ISA on 3 July with £3900 - now, 5 weeks later, it's valued at £4400 - an earning of £500 in just 6 weeks - I was obviously lucky with the recent climbs in the stock market.
Question - do I stay with it - part of me thinks it's unlikely to go much higher and I should take the profit - it's about 12% profit. Or just hang on and ride with it?

Would be grateful for any opinions

Thanks

chopperharris

Do you need the cash , or is it just looking tempting?

What will you do with the proceeds , is it going to be reinvested , spent or banked?

If you cash it then thats the isa used and the market is still down from its historical high by 25 percent plus.If you bank it then returns are poor at best , how about keeping it until april for the increased cash isa limit?

If the experts are right and the recession is pretty much over then it should get higher , but as the small print always say can go down as well as up.

If it was me I would just risk it until april and use it to fund the higher isa cash limit , much as I am doing with another pricudt.But then I can afford to take a hit on such a small amount compared to my overall portfolio you though might not be as bouyant.

I look at short term on my portfolio as 3 years for shares , medium five and long 7-10.

Aegis

For a start you should transfer to a better ISA. A 1% annual charge on a tracker product is extortionately expensive when you could get a good managed fund for about 0.25% more and an equivalent tracker for less than half the cost.

After that you should really ask yourself why you picked a 5+ year investment and want to exit now, especially since doing so will lose £3900 your stocks and shares ISA allowance for the rest of this tax year.

simbux

Thanks for the telling off Aegis. ;-) Will go sit in the corner and think about what I've done...

dunstonh

Virgin financial products are very poor. They have one of the worst stakeholder pensions you can get and the ISA is not only expensive for what it is but it also only offers 2 or 3 funds. All of which are medium/high risk. So, you have no opportunity to diversify or rebalance or protect gains.

You can investigate switching to a fund supermarket which doesnt need to cost you anything.

Aegis

simbux wrote: »

Thanks for the telling off Aegis. ;-) Will go sit in the corner and think about what I've done...

Don't think of it as (much of) a telling off, just ask the right questions of yourself before you take any action