Phoenix (Abbey) Investment Bond

runmartin

I have a Phoenix (was Abbey) Investment Bond which I took out in 1999. The initial investment was £5500 and is now worth £6554. The value did drop as low as £4100 in 2003 and the fund is Phoenix ANL Managed according to the latest statement. I was hoping to cash it in and pay off my mortgage and start a shares ISA or something similar (not quite sure yet). The Investment Bond has not performed very well and was wondering whether this a good idea as I would like to be mortgage free (outstanding mortgage £7400) and start a regular savings (e.g. an ISA). As I have seen the investments value drop quite a bit when the stock market hits a low and I get the feeling there will be another low soon is it worth getting rid now?

Thanks

Martin

dunstonh

The Investment Bond has not performed very well

The investment bond doesnt perform at all. Its the investments inside that perform and the option you have has a range of funds and some have been doing very well. You, however, are in the bog standard, jack of all trades balanced managed fund which I would refer to as a fund that just plods along. Never losing too much, never making too much.

I get the feeling there will be another low soon is it worth getting rid now?

Who knows? If you invested in a half decent spread before the last crash, you are getting upto doubling your investment now. Pick a single fund or a default fund and you arent going to get that sort of performance.

If you dont have the knowledge to research funds yourself and dont want to use a professional investments adviser then you are probably better off clearing the mortgage. If you are willing to go DIY or use professional advice then keeping it is certainly a valid option despite what may or may not happen to the markets.