Invesco Perpetual Euro Growth Acc ISA

number9

Since Dec. 1998 I have been investing £35 pm to the above fund to (hopefully) meet the additional mortgage borrowing of £17000 I had when I moved house. The investment was based on a maturity date of December 2018 ie 20 yrs.

This fund grew at a tremendous rate then crashed as it was top loaded with tech stocks and it appears now to be more stable under new management.

I have looked at my online statement dated 15th April and it shows:

Units held: 595.12
Price Fund Ccy (what is Ccy?) 4.2369 GBP
Value in GBP 2521.46

I am uncertain whether to :

a) continue as above
b) cash in and pay sum against mortgage (changing to repayment basis soon)
c) stop paying in but maintain investment until 'price is high' !

Any advice would be most welcome.

blinko

if you think the market will go up then you should hold on if not then sell

it is always a good idea to reduce your liabilities eg your mortgage here

how would you know when the price is high ?? i think after 2 years of growth the markets are easing off and they appear to be dipping but on ther other hand this could just be a small dip and still have a load of growth left in them !!!

dunstonh

Ccy = currency.

a) could do. Its a personal choice rather than a financial one.
b) could do. If you think your investments are going to perform worse than the interest rate of the mortgage.
c) Knowing when is high is down to luck and cannot be relied upon.

Personally, i think you should consider redirecting the contribution into a different fund now to diversify. Currently you are investing in a medium/high risk area and you may prefer a different risk rated fund.

number9

This fund did really well then suffered a collapse but when I looked at the Invesco chart for the whole period of my investment, ie since Jan 99, it has almost exactly mirrored the FTSE.

Thank you for your contributions.

EdInvestor

You've more or less made up losses and will break even now on your contributions, No 9, so I should dump that one and use it to reduce the mortgage now .

IMHO it's not worth incurring currency risk with investments - just look at the state of the US$ against sterling, anyone who has invested i US funds is losing hand over fist just on the currency.Stick with sterling based investments, much less risky.

Debt_Free_Chick

One thing you should think about is a contingency. What if this investment doesn't grow sufficiently to repay the mortgage? What will you do then?

If you have a contingency e.g. other savings or investments, then you can dip into those. And if this investment is sufficient, then those other savings are just a bonus windfall for you!

Plan carefully

p3gg

I'm with dustonh: DIVERSIFY

You don't say who is providing your ISA wrapper. You could look at re-registering your investment with a funds supermarket such as that operated by Fidelity

http://www.fidelity.co.uk/direct/select/fundsnetwork/rereg/index.html

This would immediately give you access to a very wide range of funds.

number9

p3gg

sorry p3gg, could you explain what you mean by "isa wrapper"?

thanks

p3gg

number9 wrote:

p3gg

sorry p3gg, could you explain what you mean by "isa wrapper"?

thanks

When you set up your ISA, which company did you set it up with? Did you set it up directly with the same company that manages your chosen fund (in this case Invesco Perpetual), or with another company? To put it another way, who is sending you your annual or six-monthly statements and other communications about your ISA? Invesco Perpetual, or a third party? If you think of your ISA as a shopping basket and your investments in one or more funds as individual items in the basket, then whoever sends you your statements is the ISA wrapper (i.e. "basket") provider.

If your ISA wrapper provider is Invesco Perpetual, then by the looks of their website it would seem that you are limited to purhasing units only in their funds. You may be fine with this -- after all they're a reputable company with a range of funds designed to meet all sorts of different investment styles, objectives, degrees of risk etc -- but if you chose to re-register your holdings with a funds supermarket (i.e. keep your existing ISA investments but change your ISA wrapper provider) then you would have the option of investing additionally in funds from not just Invesco, but also the dozens of other companies authorized to provide unit trusts in the UK.

The other big advantage of using a funds supermarket rather than the fund manager to provide your ISA wrapper is that there can be significant savings for you on initial charges. Taking your Invesco Perpetual European Growth fund as an example, it appears that with Fidelity's FundsNetwork the initial charge is a big fat zero percent, as opposed to 3% when investing directly. See link below:

http://customer.morningstareurope.com/uk/fdbx/funds/overview.asp?cid=CL00001713

And I have to add, looking at that link and the chart of the fund against its benchmark index, personally I wouldn't be too happy to be paying 3% initial charges for a fund that looks very much like a "closet tracker". See here for an explanation of that term: http://msn.pfmagazine.co.uk/msnpf167.htm

Hope this helps a bit. The main thing if you do decide to re-register is to let your new provider handle it for you. Don't be tempted to cash your funds in and then repurchase through a different provider, as this would mean you'd lost your ISA entitlement for every year since 1998/99! (Sorry if I'm stating the obvious there!)

Dave_The_Rave_2

You generally pay quite high charges for ISAs, both on initial charges, and annual charges. Transfer's however to a discount broker can be free and provide other benefits. Hargreaves Lansdown, who not only significantly reduce these charges, but also provide a loyalty bonus, just for being with them !

You can also move your funds around very easily, although I recommend you do this by phone rather than their website, as it means you can reinvest straight away, which you can't do on their website for some reason.

I believe they're also currently offering a cashback for any new investments or transfers over the next few weeks.

Personally they save me several hundred pounds each year in costs, and provide excellent service. No I'm not employed by them(!), but it's nice to see a company which gives us money back or MAJOR discounts, and no catch for doing so ! I mean, we're not talking pennies here, and you're still holding the same funds. Win..Win..situation. Ah, nice !

Their website is:-
http://www.h-l.co.uk/

Or ring them up and have a chat.

number9

ISA direct from Invesco.

thanks for your help