Natwest stocks and share account cost me £430 in a week! I'm on the verge of crying!

jonj123

Cleaver wrote: »

The market didn't really change that much, and you did pretty much receive your investment back. You lost 2% over a period of a week, an average of your investment falling around 0.4% a day. This could be considered a bad week, but as loads of other people have pointed out it's pretty much par for the course when it comes to markets. Be thankful that you didn't lose more.

As Dunston has already pointed out, if people could invest as much money as they wanted with Natwest then cancel any time within 30 days with the losses cancelled don't you think every single person would gather up all of their money and invest it with Natwest for risk-free investing? Did this not occur to you? Natwest would go bust pretty quickly if they covered all investor's losses for a 30-day grace period.

The most baffling aspect of this story is that you're now planning to throw your house deposit money at another bunch of high-risk funds with the goal of returning 50% over a three year period because it's better than savings. Every single person is advising you that, based on your circumstances, this is a bad idea. Yet you still seem keen on doing it.

I have taken the advice on board and will NOT be investing in the funds that I initially put up - it was only an idea - clearly a bad one.

I still think I wasn't given sufficient information by the salesperson before investing. In fact he didn't even tell me about the 5% initial charge until after we had spoken for an hour just before he gets me to sign the documents.

dunstonh

I still think I wasn't given sufficient information by the salesperson before investing.

It is not mandatory to be told everything before you invest. If it was the meetings would last about 100 hours. You should be told key facts and risks and these should also appear on the suitability report. Take a look at the report and you should see that cancellation rights is mentioned and that you may not get back your investment if you cancel. Also, read the cancellation rights you were sent and it would say the same.

In fact he didn't even tell me about the 5% initial charge until after we had spoken for an hour just before he gets me to sign the documents.

He's a sales rep. His requirement is to tell you. The order he tells you doesnt really matter from a compliance point of view as long as its before you sign the application. Being a sales rep going through a sales process, they will try and hook you first before giving any negatives. That doesnt make it wrong. That is standard sales technique. Got you wanting to buy it before giving you the price. You could still have said no at that point.

The fact is that a 2% loss over that period is nothing when looking at 100% stockmarket. You seem to accept that you want to invest in the stockmarket. So, either you get used to the fact that you are putting your money at risk of losing 25% in a week (typical crash figure that WILL occur periodically) or 50% if you go as high risk as you were suggesting or you don't invest the money and dont take the risk.

life_nit

Don't risk money you can't afford to lose. If your on the verge of crying over £450, it's ludicrous. Learn from it and don't play the market until you have a sufficient net worth to cover the investment.

Also an investment is about the long term not a week

barny_100

You have to wonder how the OP ended up with £25k "spare" in the first place if they are this gung-ho/naive with their finances?

jem16

jonj123 wrote: »

I have taken the advice on board and will NOT be investing in the funds that I initially put up - it was only an idea - clearly a bad one.

I think most people are saying on here that investing in ANY funds is a bad idea considering your short time scale of 3 years and your goal of having a deposit for a flat.

The best idea I've seen so far is to save £50k in a fixed term account and use £5k to invest with so that you learn the basics.

iltisman

I avoid shares I would rather put the money on the horses ,once I bought shares at 11am and by 3 pm they had fallen by 55%.On another occasion I bought shares in the morning
and the government meddled with the market and they fell by 40% in a day.

turbobob

The government meddled with the market? What shares were they??

dunstonh

turbobob wrote: »

The government meddled with the market? What shares were they??

He lives in Zimbabwe

Sceptic001

iltisman wrote: »

I avoid shares I would rather put the money on the horses ,once I bought shares at 11am and by 3 pm they had fallen by 55%.On another occasion I bought shares in the morning
and the government meddled with the market and they fell by 40% in a day.

With luck like that, have you considered setting up a "reverse tipsheet" - shares you think are winners that the rest of us can avoid?

paulw19

jonj123 wrote: »

Natwest have really frustrated me and the first thing I do when they open on Tuesday is to close down all the accounts I hold with them and move my 55K elsewhere.
I know how the stock market works but I certainly didn't anticipate a £430 loss after a week. I thought the 30 day cancellation notice meant that I would get my initial investment back but it clearly wasn't the case. Really frustrated - it's ruined my day

Sorry, this might have ruined your day but it has made mine!! Are you for real!? How are Natwest to blame in any of this?? If the stock market had rose 5% in the week and you still wanted to close your account, what amount would you ask for then? I'm sure you would try to get your capital plus your 5%. If you want to entirely move your banking (not the simplest of jobs) as a result of this experience then I'm sure that any bank would be glad to see the back of you and your grand sum of £55,000. Spat the dummy right out here haven't you!?

Put things into perspective - last week, I 'lost' over £1,000 in a day on falls in the Nikkei 225 and I didn't bat an eyelid. Since then the markets have reversed, and I closed the trade with a nice profit a couple of days later. Markets are volatile, especially now, and you really need to know what you are getting yourself into. On the other hand, you invested in an ISA and a fund, long-term investments, and decide to close them after a week?? I suggest you go and read up on financial markets while I finish laughing at this joke of a post! :rotfl: