Fidelity Moneybuilder Index Tracker ISA

delmar39

Hi there

I currently have 4 years worth of investments in the above fund. I save monthly and now that the stock market is on the increase again the funds are starting to look healthy again, but still not great.

Question is when do you cash in your annual investments? I started 4 years ago when the stock market was up at 6000 so my first year investments are still showing a loss. Do I wait for this to reach the break even point of just leave it undefinately?

I'd like to invest for a minimum of 10 years and then start cashing one in each year, but clealry I may or may not be showing a loss.

So, anyone out there got any advice on when is best to cash an index tracker in?

Cheers

Lokolo

Cash it in when you are happy with results.

Although it's never certain that you will get there.....

If you wait to long, the markets can crash and you end up in a loss. If you don't wait long enough you could get a less return than you could have got.

But would you rather have less profit than could have, or be in a loss?

(oooo 9,001 posts woo)

delmar39

Thanks Lokolo. I guess there's no hard and fast rules here and like you say the only way is to keep checking each annual investment and cash in when the time is right. Some are showing a 7% return at the moment, so beating regulary/ISA savings by a good amount.

Thanks again for you advice.

Lokolo

Also had another thought. What do you think of the future? If you think there will be a crash, take it out. If you think there is going to be a big gain in the next 5 years, put more money in.

Something else to think about !

delmar39

Thanks again Lokolo. I always invest more per month when the stock market is low and then reduce when high. Going to stay put for now and see if the FTSE increases further.

Voyager2002

The golden rule for investors: let bygones be bygones. The price that you paid for a particular stock has absolutely nothing to do with the price at which you should sell. All that matters: if you think the price will increase, then buy more or at least hold it. If you think that the price will fall, then get out while you can.