is this the time to transfer multiasset funds to a cash ISA?

donmaico

I know it seems like panicking but I have lost over 13 % of the value  of my supposed low risk multi asset fund which only has a 25- 30% exposure to the stock market ( Uk USA , rest of the world ) so I thought of limiting that loss by transferring to a cash ISA that  I have keep making regular contributions to it and then she the capital back into it when economic stability returns, if ever.Would this be a sensible strategy particularly as I am retired ?

donmaico

normally i would think leave well alone and when the crisis hits its peak that is the time to increase investment in the hopes funds recover but predictions are at best difficult to make. i could end up  losing a lot of money which, obviously, i would rather avoid

EdGasketTheSecond

If it is worrying you then move it; then at least you can sleep at night.

TCA

It depends on whether you need access to the money in the near future. If you do, you've probably invested above your risk tolerance. If not, any losses are only on paper until you sell. Then it's gone. Your investment might recover in a year. Maybe 3 years. Maybe 5 years. Nobody knows. The only certain thing is if you sell now you crystallise the loss.      

Albermarle

I know it seems like panicking but I have lost over 13 % of the value  of my supposed low risk mult

Well if you had been 100% in equities you would have lost around 35%. If you had a typical fund with say 60% equities , you would be down about 18% ( its not a linear relationship as it depends how the non equity part has performed)

For a 25/30% equity multi asset fund - 13% seems a little on the high side , so maybe worth having a look around how other similar funds have performed.

Otherwise investments go down as well as up , so normally it is best just to ride these down times out.

dunstonh

I know it seems like panicking but I have lost over 13 % of the value  of my supposed low risk multi asset fund which only has a 25- 30% exposure to the stock market ( Uk USA , rest of the world )

So, the loss you have suffered is still within the typical range for the fund (perhaps a bit higher but not by much).

 I thought of limiting that loss by transferring to a cash ISA that  I have keep making regular contributions to it and then she the capital back into it when economic stability returns, if ever.Would this be a sensible strategy particularly as I am retired ?

What has changed since you started investing?

The fund you are in has suffered a loss less than it would have suffered on two previous occasions in the last 20 years.  So, before you invested the money, you would have known what it was going to lose at some point.   Now that it has suffered a loss like that, you now wish to draw it.    What has changed since you started investing?

george4064

donmaico said:

I know it seems like panicking but I have lost over 13 % of the value  of my supposed low risk multi asset fund which only has a 25- 30% exposure to the stock market ( Uk USA , rest of the world ) so I thought of limiting that loss by transferring to a cash ISA that  I have keep making regular contributions to it and then she the capital back into it when economic stability returns, if ever.Would this be a sensible strategy particularly as I am retired ?

Which fund are you actually invested in?

Maybe posters can take a closer look for you to help you understand which underlying assets/regions you are actually invested in.

donmaico

These are the george4064 said:

donmaico said:

I know it seems like panicking but I have lost over 13 % of the value  of my supposed low risk multi asset fund which only has a 25- 30% exposure to the stock market ( Uk USA , rest of the world ) so I thought of limiting that loss by transferring to a cash ISA that  I have keep making regular contributions to it and then she the capital back into it when economic stability returns, if ever.Would this be a sensible strategy particularly as I am retired ?

Which fund are you actually invested in?

Maybe posters can take a closer look for you to help you understand which underlying assets/regions you are actually invested in.

The five following funds
Architas MA Passive Moderate D Acc

BlackRock Consensus 35 Fund D Acc

Legal & General Multi-Index 4 Fund Acc

Premier Liberation No IV Class C Accumulation

Vanguard LifeStrategy 40% Equity Acc

donmaico

dunstonh said:

I know it seems like panicking but I have lost over 13 % of the value  of my supposed low risk multi asset fund which only has a 25- 30% exposure to the stock market ( Uk USA , rest of the world )

So, the loss you have suffered is still within the typical range for the fund (perhaps a bit higher but not by much).

 I thought of limiting that loss by transferring to a cash ISA that  I have keep making regular contributions to it and then she the capital back into it when economic stability returns, if ever.Would this be a sensible strategy particularly as I am retired ?

What has changed since you started investing?

The fund you are in has suffered a loss less than it would have suffered on two previous occasions in the last 20 years.  So, before you invested the money, you would have known what it was going to lose at some point.   Now that it has suffered a loss like that, you now wish to draw it.    What has changed since you started investing?

I am not sure which funds you are referring to as I have had few in the past but not multi asset ones like the present ones. These funds I have had for 2.5 years now and the only change since tone is this present crisis .Growth rate has been relatively  low but I wasn't too concerned about because i assumed that meant they were lower volatility

dunstonh

I am not sure which funds you are referring to as I have had few in the past but not multi asset ones like the present ones. 

It doesnt matter which fund as they are all pretty much acting in line with their historical norms.

These funds I have had for 2.5 years now and the only change since tone is this present crisis

This is not the first negative market event.  There have been two bigger in the last 20 years alone.   So, this level of loss should not be a surprise.

Growth rate has been relatively  low but I wasn't too concerned about because i assumed that meant they were lower volatility

They do have lower volatility.   

Albermarle

donmaico said:

These are the george4064 said:

donmaico said:

I know it seems like panicking but I have lost over 13 % of the value  of my supposed low risk multi asset fund which only has a 25- 30% exposure to the stock market ( Uk USA , rest of the world ) so I thought of limiting that loss by transferring to a cash ISA that  I have keep making regular contributions to it and then she the capital back into it when economic stability returns, if ever.Would this be a sensible strategy particularly as I am retired ?

Which fund are you actually invested in?

Maybe posters can take a closer look for you to help you understand which underlying assets/regions you are actually invested in.

The five following funds
Architas MA Passive Moderate D Acc

BlackRock Consensus 35 Fund D Acc

Legal & General Multi-Index 4 Fund Acc

Premier Liberation No IV Class C Accumulation

Vanguard LifeStrategy 40% Equity Acc

You mentioned in your first post equity % of 25 to 30% . In fact these are mainly in the 35%/40% region. In which case a 13 % drop is as expected,