Invesco perpetual High income

Uncle_Bob_Kelso

Hi There,
I know there are some wise folk out there that can give me their opinions on this.
Last year I put 2k in a stocks and shares ISA, 1k of which was in the above fund. Over the last year that 1k has dropped to 880 pounds. Now I m not a reactive person, i know that i m in for the mid-long term, and i know that funds go up and down and the last year has been volatile, but I don t know where i should sensibly draw the line in terms of saying enough is enough I m switching funds. My other 1k has done a lot better ( natural resources). I don t want to make a knee jerk decision i also don t want my money frittered away down the pan and not do anything when i should
Any opinions?

Jonbvn

Neil Woodford is a highly respected manager in the industry. That's the reason I will be sticking with him long term.

IMHO selling now would be incorrect. However, only you can tell what is right for you!

To be honest, given the relatively small drop, I would suggest that you reconsider your view on risk, and perhaps consider some other less risky investment options.

dunstonh

The inv perp fund has the potential to drop around 40%. The Nat Resources fund has the potential to drop around 60%. On a risk scale of 10, the Inv perp fund is 6 and the nat resources fund is 9.

Given your concern at just a very small loss, the way you are investing appears to be way above your risk profile.

TBeckett100

at the end of a bull run on the markets, performance of shares seem to leave the path of normality. strong companies dont fair as well as smaller companies.
The IP High Income Fund is made up largely of strong UK companies with good dividends and with rainy day industries, energy, tobacco etc. Stick with it is my opinion

Ian_W

A couple of days ago Morningstar did an article on the UK Equity Income sector - HERE - which included the following:
" We have to tip our hat to Neil Woodford. Once, again, his Invesco offerings stood head and shoulders above their sector rivals during the last six months, losing about 6.7%, compared to a more-than 9% loss for the sector median. With less than 6% in the financial services sector in mid-2007 and nearly 10% in cash or equivalents, he neatly sidestepped the worst of the carnage. He also resisted the urge to chase faddish mining stocks--instead, he stuck with old standbys such as tobacco and utilities. Make no mistake--as we've pointed out in the past, these allocations pose their own risks, but they are exactly the type of issues that should hold up well in an economic downturn."

Personally I'll "stick" - but only you can decide if you're happy with it.

Uncle_Bob_Kelso

dunstonh wrote: »

The inv perp fund has the potential to drop around 40%. The Nat Resources fund has the potential to drop around 60%. On a risk scale of 10, the Inv perp fund is 6 and the nat resources fund is 9.

Given your concern at just a very small loss, the way you are investing appears to be way above your risk profile.

To be honest risk level does nt worry me, but as this is the first time I ve actually invested per se I did nt know whether I was foolish to not move and just wanted some clarifcation from others. The money will be locked away for a good 10 years minimum so know there will be many ups and many downs.
thanks for letting me use your experience

chesky369

I know it's very depressing if you're new to investing and the first time you do it, the market drops. Just forget your £2k, don't check the prices day-to-day (we all do it when we start). In fact, pretend that money never existed for about a year.

Jonbvn

chesky369 wrote: »

I know it's very depressing if you're new to investing and the first time you do it, the market drops. Just forget your £2k, don't check the prices day-to-day (we all do it when we start). In fact, pretend that money never existed for about a year.

Correct, although difficult with the internet which allows you to micro-manage and analyse your funds.

Uncle_Bob_Kelso

I think you ve hit the nail on the head there, it so easy to just log in and see!
Thanks for the advice.

chesky369

".....which allows you to micro-manage and analyse your funds."

no - you don't analyse anything, you just get cheerful or depressed.