Can funds actually go bust?

Chippy99

dunstonh wrote: »

I would say sell the fund as you are not quite getting it at the moment.

What is it you think I am not getting? Are you always so rude to be coming on here seeking a bit of friendly advice? I might not be an investing genius, but with a 1st in Physics I think I can just about figure out the effect of exchange rates. Your starting point seems to be to assume you are dealing with idiots, which is hardly friendly nor helpful.

atush

Well you are not getting the advice, that is for sure.

You asked a question, and a professional told you what you were getting wrong. Instead of taking that on board, you are taking offence.

Prism

Chippy99 wrote: »

What is it you think I am not getting?

Just that it is entirely normal for funds to behave like this. Some are more volatile than others - it doesn't make them bad funds or a bad manager. What are you going to do when all of your funds do this together during a crash.

One question is why is this drop bothering you? I assume you don't need the money any time soon?

Bravepants

I think in some circumstances it's wise to cut losses if you are feeling stressed about it. From what I read of the thread it's only a few percent of your portfolio. Why not sell it and stick the proceeds into a SIPP (maybe over a couple of years) and let the government give you 25% back? That's what I would do.

MK62

Chippy99 wrote: »

Of course, I was just responding to the suggestion that Nifty 50 is down 7% over the last 12 months. It is 4.3% up.

I think dunstonh was giving you the Nifty50 performance in Sterling terms (and it's down about 9% now after another bad day) rather than in local currency terms......

True, Jupiter India has performed worse then the Nifty50 index, but it's not a Nifty50 tracker, and so will have worse days and better days than the index (quite apart from being priced in a different currency)

It's having a rough time at the moment - on top of India's general current malaise, some positions the manager took have been hammered by government intervention.....unfortunately this kind of thing happens from time to time (and it does here too......remember the hit on energy suppliers here when the tariff price cap was announced)

If Friday's 4.76% drop hit you for £2k, then your original investment must have been over £50k - if so, I can understand your angst (I'm only into this fund for £4k....and I'm down 18% overall).......but others are pointing out that you may have invested beyond your risk profile and comfort level here. That's not a personal insult.......I suspect we've all done this at some point. The bottom line is that Jupiter India is a high risk fund, and we are experiencing why right now.

Nobody can really say what you should do from here, that's a decision only you can make......it's a tough call tbh......sell and you crystallise your losses.....hold and you risk further losses (on paper at least)....buy and you might be throwing good money after bad......the classic investment dilemma when an asset is falling!

Chippy99

atush wrote: »

Well you are not getting the advice, that is for sure.

You asked a question, and a professional told you what you were getting wrong. Instead of taking that on board, you are taking offence.

What on earth are you talking about? What have I not taken on board exactly? And he didn't give me any advice, just snide comments about my (perceived) lack of understanding.

And yes, I do take offence when people make rude comments, or is being offended not allowed on here. Sheeesh.

I think what I am inclined to do is hang on to it since although it's a bit more of my portfolio than in hindsight is sensible, it's still only 5% (well, somewhat less now!). Maybe I'll ditch some of it to limit my exposure a bit. Not sure, but thanks to everyone who made helpful and non-judgemental, non-condescending comments.

slinga

Chippy99 wrote: »

What on earth are you talking about? What have I not taken on board exactly? And he didn't give me any advice, just snide comments about my (perceived) lack of understanding.

And yes, I do take offence when people make rude comments, or is being offended not allowed on here. Sheeesh.

I think what I am inclined to do is hang on to it since although it's a bit more of my portfolio than in hindsight is sensible, it's still only 5% (well, somewhat less now!). Maybe I'll ditch some of it to limit my exposure a bit. Not sure, but thanks to everyone who made helpful and non-judgemental, non-condescending comments.

One problem with selling is it confirms the loss.
Another is what to do with the cash.
Another is when and where to get back in the market.

dunstonh

Another is when and where to get back in the market.

That isnt a problem as if the OP cannot handle a small 25% drop now then they are not going to be able to handle a 25% or greater drop later. So, no point reinvesting into that area.

Until the OP understands currency risk and how currency fluctuations in both Sterling and the investment area impact on returns, they are probably best suited to limiting investment selections from areas of high currency fluctuations.

[Deleted User]

Hi,

Chippy99 wrote: »

I have quite a lot of money invested in various funds held in an ISA. Generally they are performing well, but one - Jupiter India - is stinking the place out, being circa 17% down and putting me thousands of pounds in the red on my investment.

Since I am looking at this as a long term investment (10 years+) I am not overly concerned - just ****ed off. I could even be persuaded to buy more since the price has fallen so sharply and long term India growth forecasts remain strong.

HOWEVER. is it possible for funds like this to actually go bust and for me to lose all my money? I can bear short term ups and downs, but were I to lose my entire investment, that would be a disaster.

Thanks for any advice / comment?

Chippy99 wrote: »

Yep as expected. Down 4.76% in one day, another £2k down the pan. Against a backdrop of +0.91% GDP/INR and -2.67% on the Nifty. So (yet) another day of Jupiter underperforming against the market.

You first posted on Tuesday and have moaned since, so why didn't you sell on Tuesday and cut your loses?

Chippy99

IanManc wrote: »

Does your 1st Class degree in physics come with any expertise in investing?

No, I thought not.

Dunstonh has not been rude to you and he has not been snide.

Yes, he has. Saying "I would say sell the fund as you are not quite getting it at the moment." is rude, and that's on the back of previous rude comment, and followed by further rude comment. How the **** does he know "what I am getting". The cheeky sod. Where's the "sorry, I didn't mean to cause offence" after the first rude comment, if it wasn't intentional?

He is an expert in his field, and you are completely failing to listen to the information that is being given to you by him and others.

Your choosing to be offended is your issue, not anyone else's.

What information is this that "I am completely failing to listen to"? I am intrigued as to how you can be so completely judgemental (and incidentally, mistaken).