Stocks increase but fund decreases?!?!

Silian

NewKidOnTheBlock wrote: »

It's not so much that I'm investing more than my risk tolerance it's just that I'm new to investing and with most things you try for the first time, you're a little nervous. Cheers for the help.

I am also just starting to invest and have to admit that I am checking the prices much more often than I should.

But here is the thing: because I'll be contributing regularly I'm hoping that the stock market crashes. Because I'm at the start of my investment career now would be the perfect time for that to happen as that means I will get more shares for my money.

Another good time for it to happen would be right before I retire as I'll then be unlikely to overestimate how much I can safely withdraw.

In other words, don't be nervous - you are in this for the long run. And create some ground rules so you don't panic buy/sell.

Edit: All of my funds have also fallen this month - not sure why but I do cheer a bit each time that happens as my next contribution will be taken on the 18th.

NewKidOnTheBlock_2

InvestInPoker wrote: »

OP it's understandable you are nervous. Did you know precisely what you were getting into before you bought into stocks and shares funds? If so then relax and understand to get the long term high return you must have the volatility that comes on the way, it is absolutely necessary.


Spare a thought for all those "clever" people who sold just before the election and missed out on the solid gains on the Friday following.

What gains? This is what I'm talking about... The day after the election my fund was up by about 1.8%... but the next day it was down again. For me the market goes up 1 point and down 2. Hopefully it will switch around soon and starting going up a good few percent.

Zippeh

I too am a new investor, and I'm guilty for checking too often! I noticed some of my funds (Woodford Equity Income especially) went down before the election. It went up straight after the election, just in time for my monthly contribution to automatically buy at it's highest, now it's gone down again. There will be about 30yrs until I access these funds, but as a beginner and novice, seeing the timing like that is very frustrating

redpete

NewKidOnTheBlock wrote: »

What gains? This is what I'm talking about... The day after the election my fund was up by about 1.8%... but the next day it was down again. For me the market goes up 1 point and down 2. Hopefully it will switch around soon and starting going up a good few percent.

Several posters have pointed out that changes of a few percent and timescales of a few weeks (let alone the daily changes you are fretting about) are not significant when investing in s&s funds.

alanq

From Hargreaves Lansdown FAQs

"The market was up yesterday, why is my fund down?

Market performance is quoted open to close. A fund will usually price midday to midday. Therefore a day's market performance is unlikely to be reflected in a day's fund performance.

In addition, unless you hold a fund that tracks the index, the underlying investments and weightings within the fund will be different to that of its benchmark index."

http://www.hl.co.uk/help#funds,-shares-and-other-investments/funds/fund-pricing/the-market-was-up-yesterday,-why-is-my-fund-down