ISA advice

EGGBERTYONE_2

Hi,
I have to start with honesty and be clear that I do not understand money matters as clearly as I might...

I have a Sterling Stocks and shares ISA to which I invest £1500 per annum, less £72.70 service costs etc.
I started this Isa with an initial large investment.
I get a statement bi-annually which arrived today and once again shows the ISA to have risen in value by less than I have invested this last year.
Last year value £14267 this year value £15131 total rise= £864 total invested £1427.

I find this irksome ever time I get the statement.
Last time I got one I spoke to the Sterling financial advisor, with my basic understanding and he said I was correct in my understanding.
I suggested that, since my investment stays the same monthly, when share prices are very low, I am buying lots of shares and thus, when the market improves....I know this is a long term investment and markets globally are struggling.... The value of my ISA would increase dramatically (I suggested exponentially but was trying yo sound like I knew what I was talking about). He agreed and said this is absolutely the case and, if anything, the current market is FABULOUS for me, as someone who sees his ISA as a savings mechanism and has no intention accessing the funds (unless there's an emergency) until I retire ( as of today, another 15-20 yrs away).
So..... Does thus all make sense or am I wasting a fortune, as it seems I'm missing £600 per year and if I just chucked it in a high interest internet account I'd be doing better... Please help

Totton

That seems ridiculous, a Stocks & Share ISA should have risen much more during 2013-14. You need to post the constituent holdings for us to be sure but on the basis if what you say then yes you appear to be throwing money away. What do you hold din the S&S ISA, give the 12 month start and end figures for each holding if you have them to hand, plus a list of what your £1,500 has bought.

Of course it could just be that you are in very safe investments such as Personal Assets, RIT Capital Partners etc whose safe stance lost them money in that period. If that is the case then review your investment advisers performance ;-)

xylophone

Sterling Stocks and shares ISA

http://www.sterling-assurance.co.uk/investments/existing-customers/isa.htm One of these?

EGGBERTYONE_2

Hi again
My units are in
Aberdeen emerging markets
Henderson emerging markets opportunities
Jupiter Merlin growth portfolio
Jpm natural resources
M & g managed growth

What do u reckon?

EGGBERTYONE_2

Yes mate, that's the company

ColdIron

All well known funds, it would help to know the proportions in each

jimjames

EGGBERTYONE wrote: »

Hi again
My units are in
Aberdeen emerging markets
Henderson emerging markets opportunities
Jupiter Merlin growth portfolio
Jpm natural resources
M & g managed growth

What do u reckon?

If those are equal amounts then it's no wonder that the value is lower. 3 of 5 funds are in very high risk areas that have dropped recently, one significantly by 50% or so.

Did you choose these yourself or did an adviser select them for you?
Do you have other investments?

EGGBERTYONE_2

My holdings appear to be
Aberdeen emerging markets. 462
Henderson emerging markets opportunities. 1543
Jupiter Merlin growth portfolio. 1570
Jpm natural resources. 346
M & g managed growth. 4795

I we've stuck with these throughout and to mid risk investment advice

I can't say much more with the info I currently have

jimjames

Is that units of each? They don't add up to the amount you quoted initially?

What are your monthly payments going into? All of those funds or different ones?

All the info should be on the 6 monthly statements but you really need to find out what you are putting your money into so you have an idea of the risks and volatility.

Were these recommended by your adviser?

EGGBERTYONE_2

Units of each yes £s invested monthly added now
Aberdeen emerging markets. 462 £18.75
Henderson emerging markets opportunities. 1543 £18.75
Jupiter Merlin growth portfolio. 1570 £31.25
Jpm natural resources. 346 £25
M & g managed growth. 4795 £31.25

Yes recommended by FA that was recommended by a large national union

bigadaj

EGGBERTYONE wrote: »

Units of each yes £s invested monthly added now
Aberdeen emerging markets. 462 £18.75
Henderson emerging markets opportunities. 1543 £18.75
Jupiter Merlin growth portfolio. 1570 £31.25
Jpm natural resources. 346 £25
M & g managed growth. 4795 £31.25

Yes recommended by FA that was recommended by a large national union

They are all pretty high risk and high cost. You're investing in two emerging markets fund, one mining/ oil, and two funds of funds, so you couldn't get a lot more high risk really.

The fact you bought from a fa suggests that this was more of a sale rather than objective advice, I'd do some reading up on here and elsewhere to work out what you want to be invested in and why. General funds might be better as a core investment with some satellite funds in terms of what you are currently invested in plus maybe smaller companies.

Fees are the other thing that jumps out of that selection, the total costs are probably above 2.5% a year.