RBS Global Bond Fund Class 1 Inc. Close or Keep?

GhibliFan

A smallish Investment ISA in this fund. It's lost a couple of thousand £'s in value this year.  Close it now and cut the losses or keep and hope it goes back up?  Obviously nobody knows exactly what will happen in the future, but in the last few weeks the value was creeping slowly back up and has now started going back down again.  There's no desperate need to get the money out but don't want it go down to nothing either.  As you can probably tell, I know nothing about finance. 

Any idea if a looming recession will cause this to drop like a stone or not?  (Btw, if you're wondering why I chose an ISA I don't understand, it's not actually mine.).  My apologies if this is a daft question.  

ColdIron

What was your reason to invest in it initially?

It's mainly a corporate bond fund intended to provide reliable income over the long term which, with a yield of ~3.50%, it appears to be doing. With the recent rise in interest rates many corporate bonds have dropped in value. For income/fixed interest funds like these the income is more important than the unit price

If you bought it for income you might want to stick with it as it's doing its job. If you bought it to get rich then it's the wrong fund

GhibliFan

Thank you for your reply 

I didn't buy it (I prefer cash ISAs I can understand).  It was bought a long time ago by a relative. My concern is that recent world events will make it tank and it could take years to go back up, or never will.  

Edit: no, not expecting riches 😆 

dunstonh

Close it now and cut the losses or keep and hope it goes back up?

You have mentioned a single sector fund that is designed to be held in a wider portfolio.    Not in isolation.

Is this your only fund in the portfolio or are there others?

GhibliFan

No, just this. 

dunstonh

GhibliFan said:

No, just this. 

That is bad quality investing and should be changed for that reason.   It is a bit like wanting to buy a car and only going home with the wheels.

MX5huggy

It won’t tank to nothing, as you’ve observed it’s done most of its tanking (possibly). If your relative has no other investments then it’s a bit weird to hold it.