Halifax ISA Investor and Guaranteed Investment Plan

harold123

Hi All,

I currently have money on both the ISA Investor (cautios Fund) and guaranteed investment plan.

With these recent FTSE 100 losses I've noticed my ISA Investor value decrease by around 700 pound in the last week or so down to 8500.

I havnt really got a clue about money or what i had invested in with this plan but does anyone know if this recent fall in the market will have a messive effect on my investment?

And also i have 17500 in the Halifax Guaranteed Investment plan, will this have the same effect?

Views would be greatly appreciated!

Thanks!

caliston

Usually Guaranteed Equity Bonds take samplings of an index (eg FTSE100) at particular times (eg twice, five years apart, though it can be much more complex). Without knowing the dates it's difficult to say. When did you take it out, and how long for? Which index is it tracking?

Since GEBs are based on the value of the index (rather than dividends) they're more susceptible to such fluctuations. But the FTSE100 at close today is back where it was in Jan or May 06, so if you put your money in before then you still might gain. But perhaps not as much as you would have done in a savings account, or perhaps not compared to inflation - difficult to say without the details.

Jonbvn

GEB's are a shockingly poor investment, since you do not get any of the dividends. Avoid!

Mikeyorks

harold123 wrote: »

With these recent FTSE 100 losses I've noticed my ISA Investor value decrease by around 700 pound in the last week or so down to 8500.
I havnt really got a clue about money or what i had invested in with this plan but does anyone know if this recent fall in the market will have a messive effect on my investment?!

If that's in a 'cautious managed fund' - then it's not the FTSE tracker, surely? In which case the impact should be much less than a pure tracker, as this is a 'managed' fund. Talk to the Halifax people (York?) if you're uncertain - but your documents should show which funds you're involved in.

harold123 wrote: »

And also i have 17500 in the Halifax Guaranteed Investment plan, will this have the same effect?

No -- the 'guarantee' part is surely (look at the Halifax website under 'Investments') that you are guaranteed to at least get back the value of your initial investment .... after 5 years. And there's an additional guarantee that you will get back at least 80% of the best value of your fund! Which I presume is : Worst case ...you get back either your initial investment or the 80% ... if that is the higher (after 5 years).

Mikeyorks

caliston wrote: »

Usually Guaranteed Equity Bonds take samplings of an index (eg FTSE100) at particular times (eg twice, five years apart, though it can be much more complex).
.

The first one is a 'cautious {managed} fund'. The second one is a guaranteed investment plan ... not a GEB. For which, at the moment, the OP should be grateful;)