Nutmeg - should I increase my pot?

ChrisB25

I opened a Nutmeg S&S ISA fully managed in March last year - but although doing Ok last year, it has dropped to just below what I have invested - should I put more in next financial year? I know this is long term not short term - but things look volatile at the moment so what should I do?

tacpot12

The war in Ukraine has had an impact on most investments. I would suggest that you continue with your plan whatever that was - if your plan was to continue to invest (and you still think that the investment is the right sort of investment), then continue investing. For long-term investors wars and other causes of volatility are to be expected, and even welcomed as the might be an opportunity to buy a valuable stock at a discount. 

Albermarle

but things look volatile at the moment 

They nearly always do in the financial markets, and at the moment I would not say it was any worse or better than usual.

Although most investments are down this year , not just due to the Ukraine situation , there has been a bounceback in recent weeks , so should not look that bad .

jimjames

If the investment prices are down then surely that's a good thing as you get more for your money this year? Adding more should all depend on what your plan is, not how the markets are performing.

Alexland

There's nothing particular about Nutmeg that's causing you to see this result. It will be similar for most new investment accounts which take a mainstream approach to portfolio asset allocation. I'd say the current drop is more likely caused by the outlook for interest rates particularly in the bond markets for those in lower risk multi asset portfolios than the war in Ukraine. Think long term, take a suitable level of risk and stick to the regular contribution plan.

Something small you could do to reduce the fee drag would be to switch to a Fixed Allocation portfolio for which the investment strategy seems no more or less likely to outperform their more expensive managed options. Or go to somewhere like HSBC Investment Centre and invest in one of their Global Strategy funds which would be even cheaper.

ChrisB25

Thanks for the advice. 2 weeks ago my pot had dipped just below what I had invested - but now it is back in the black having risen £2,000 in a fortnight. I shall stick to my plan and see how it goes.