S&s isa

colsten

masonic wrote: »

...but still down 55% over 5 years.
http://www.trustnet.com/Tools/Charting.aspx?typeCode=FCPGGA

You aren't helping those wanting to make a quick kill on the back of the current market slides, masonic!

dunstonh

andyw3 wrote: »

Hi,

I opened a stocks and shares ISA, and it's fallen in value from approx £6000 to approx £5300 in the past 3 weeks.

The split is across three different funds:
Standard Life UK Equity Unconstrained I Acc - 70%
AXA Framlington Biotech Z Acc - 20%
Blackrock Gold & General D Acc - 10%

This is concerning as it's a large chunk of my savings. Is anyone able to advise on whether the value is likely to rise, or if I should close the account now / cut my losses? Atm, I stand to lose around £400 on amount invested. Is there some reason for this sudden drop??

Many many thanks in a advance

That is some rollercoaster ride you have there. Not far off the highest risk spread you can get on conventional unit trust funds. Those holdings are capable of halving your money in a year.

You have lost just about 12% in an extremely high risk and unstructured selection. That is a tiny loss for equities in general but insignificant for the holdings you have. Why have you gone gung ho in risk if you cannnot accept the losses that WILL occur periodically?

If you cant stand a 12% loss then you really need to stop investing as even cautious investors will suffer 12% losses periodically.

mal4mac

Have you considered a FTSE all shares index tracker fund?

http://www.fool.co.uk/investing-basics/isas-and-investment-funds/introducing-the-index-tracker/

It might give you more peace of mind, as the stock market has been in existence a long time; you might mollify yourself by looking at the historical performance and see that a 12% drop is normal, as is a 12% rise.

dunstonh

Have you considered a FTSE all shares index tracker fund?

Whilst it would reduce the risk a little, it would still leave it high. Too high for someone who cant handle a 12% loss (a FTSE tracker is still capable of 45% losses in 12 months.

The OP hasnt been back to the site since making the posts on the 13th Feb.

sparsely

The UK equity and biotech funds both have costs of almost 2%, are you sure your friend isn't involved in fun management?

andyw3

Thanks for the additional responses guys, I didn't get any notification they had been made and assumed posts are forgotten when they disappear from Page 1!