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

donmaico

dunstonh said:

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.   

no of course. 2008 and the tech bubble  burst before that.I guess I will just have to hang on tight for the time being and just keep making regular investments for now and then hope things take a turn for the better

atush

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 ?

Personally i think it is the wrong time to go to cash.  

takesyourchances

atush 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 ?

Personally i think it is the wrong time to go to cash.  

I think investors need to hold their nerve, if they have enough cash which they should of done before investing, I don't think now is the time to sell out and lock in a loss. This crisis will test many investors risk tolerance as have others before this and others that will come in the future. While keeping sensible levels of cash to make sure my daily life needs are covered and any unforeseen is covered, I will be investing through this just the same way as I have done in previous years.

donmaico

takesyourchances said:

atush 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 ?

Personally i think it is the wrong time to go to cash.  

I think investors need to hold their nerve, if they have enough cash which they should of done before investing, I don't think now is the time to sell out and lock in a loss. This crisis will test many investors risk tolerance as have others before this and others that will come in the future. While keeping sensible levels of cash to make sure my daily life needs are covered and any unforeseen is covered, I will be investing through this just the same way as I have done in previous years.

Yes I do have sufficient cash to tie me over plus reasonable pension as well. I just dont like seeing my investment plummet  

jimjames

Surely regular contributions should be made to the S&S ISA so you're buying some bargains at the current prices rather than selling and holding only cash. Or if you don't think the prices are bargains then stay in cash but pound cost averaging can help when you're buying in volatile times

donmaico

jimjames said:

Surely regular contributions should be made to the S&S ISA so you're buying some bargains at the current prices rather than selling and holding only cash. Or if you don't think the prices are bargains then stay in cash but pound cost averaging can help when you're buying in volatile times

"pound cost averaging" That is  what i have been doing amd will probably continue to do but it also crossed my mind to a wait until things start to turn for the better and then make a further injection of cash just to get more units before the price of them increase to what they were three weeks ago.
Think the financial expert sitting near Martin  Lewis on his tv show had it just about right

Alexland

donmaico said:

Yes I do have sufficient cash to tie me over plus reasonable pension as well. I just dont like seeing my investment plummet  

Nobody does but the ups and downs of a sensible investment are all part of the magic that eventually delivers the enhanced long term return. However being too cautious has it's own risks that the high bond content doesn't keep up with inflation.

donmaico

Alexland said:

donmaico said:

Yes I do have sufficient cash to tie me over plus reasonable pension as well. I just dont like seeing my investment plummet  

Nobody does but the ups and downs of a sensible investment are all part of the magic that eventually delivers the enhanced long term return. However being too cautious has it's own risks that the high bond content doesn't keep up with inflation.

in other words insufficient exposure to stocks and shares? 

Scotbot

dunstonh said:

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.   

Thanks. It is very helpful in the current circumstances to have experienced investors remaining calm and  providing factual perspective

Alexland

donmaico said:

in other words insufficient exposure to stocks and shares? 

Maybe I don't know your circumstances so cannot really comment but sometimes with lower risk investments you have to ask if the reduced volatility is really worth the reduced return. Personally I wouldn't ever expect to invest at less than a balanced asset allocation. If I wanted to be more cautious with my overall net worth then I would hold more in cash which might provide a better return without the risks that come from being too heavy in bonds.