Financial idiot needs help

dunstonh

Would they ever recover if left where they are ?

Probably not, no.    Not with you drawing the yield.     It would still remain bad quality investing even if you left it and it could recover.

Corporate bonds effectively have a unit price that floats up and down but doesnt really go anywhere over the long term.    The  return is in the yield.     However, depending on demand, the unit price will go up and down.  If you happen to buy the units low and then sell high, then you get lucky.  However, the reverse is also true and that is effectively what has happened to you.

And with interest rates higher than they have been for the last 15 years and not expected to return to where they were, it would be highly unlikely that the unit price (excluding income - which you are drawing) will go back to where it was.  

Ranger8

dunstonh said:

Would they ever recover if left where they are ?

Probably not, no.    Not with you drawing the yield.     It would still remain bad quality investing even if you left it and it could recover.

Corporate bonds effectively have a unit price that floats up and down but doesnt really go anywhere over the long term.    The  return is in the yield.     However, depending on demand, the unit price will go up and down.  If you happen to buy the units low and then sell high, then you get lucky.  However, the reverse is also true and that is effectively what has happened to you.

And with interest rates higher than they have been for the last 15 years and not expected to return to where they were, it would be highly unlikely that the unit price (excluding income - which you are drawing) will go back to where it was.  

Understood  but its a bitter pill to lose £50k of my total savings in 2 years and call it a day.
 So where would be better to put what is left ?

Middle_of_the_Road

Ranger8 said:

Understood  but its a bitter pill to lose £50k of my total savings in 2 years and call it a day.
 So where would be better to put what is left ?

From the figures you posted, over the 18 years, you've received income, of just under £30k, so the deficit is not 50k.
If you ditch the investments now, you will show a net loss of ~£17k
I would say, people have seen much worse outcomes from poor investment decisions. Also the loss is only real if you cash it in. 
No one knows how this fund will perform in the future, as is the case wit any "better regarded" alternative.