ISA Lost £3K in 6 Months - Stick or Switch ?

Options
24567

Comments

  • RocketRonnieRadox
    RocketRonnieRadox Posts: 46 Forumite
    Options
    coyrls wrote: »
    What do you mean by "the fund I am in now is unmanaged"? All the funds you have mentioned are managed. Do you mean that your portfolio was originally managed by an advisor of some kind but is no longer managed by that advisor? Who made your original selection of funds and what were the reasons for their selection?

    Meaning that the protfolio is unmanaged - originally managed by an FA but the FA is no longer looking after it.
  • RocketRonnieRadox
    RocketRonnieRadox Posts: 46 Forumite
    Options
    frugalmacdugal wrote: »
    Hi,





    Yes interest only but have directed my ISA payments to the mortgage some 6 years ago in the form of overpayments,
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
    First Anniversary Name Dropper First Post
    Options
    The OP has an inappropriate portfolio for their situation. It is too UK centric and has too many single sector funds for the 35k invested and the OPs ability to manage it. So, as in many cases, the best option is a low cost multi-asset fund that automatically rebalances; something like Vanguard Life Strategy or HSBC Global Strategy range or the hundreds of similar funds available from other investment firms. So I'd come up with a plan to slowly transfer the funds.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • dunstonh
    dunstonh Posts: 116,530 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Options
    To put it in to perspective my fund was worth £35K at this time last year and is now worth £29K

    £35k is best suited by a multi-asset fund and not a portfolio of single sector funds. e.g. with £35k using single sector funds, your allocation to Japan could be 3%. 3% of £35k is £1050. Its not worth the time and effort to build a portfolio and keep every fund under review and make adjustments ongoing with such as small amount.
    The reason for moving to HSBC World select was purely down to the advice given by the HSBC Premier Advisor - I am not knowledgable in these matters hence I took advice but it is increasingly looking like a sale for the HSBC advisor who told me that only premier customers have access to these funds and that they are multi million pound funds expeosed to less risk

    A sales rep for HSBC wants to sell you a fund designed to be sold by sales reps of HSBC to inexperienced investors who would not know good from bad. And tells you that he is special service only available to Premier customers....
    You were sold to by a sales rep.

    HSBC also introduced another range of funds at a similar time called global strategy and they were for aimed at IFAs and DIY investors to use. They are a fraction of the cost of the World Selection funds used by branch sales reps.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • RocketRonnieRadox
    RocketRonnieRadox Posts: 46 Forumite
    Options
    Hmm further to this loss, the cost of moving the funds will be in the order of £2,500 so that needs factoring in too
  • justme111
    justme111 Posts: 3,508 Forumite
    First Post First Anniversary Combo Breaker I've been Money Tipped!
    Options
    Moving funds would mean selling some and buy8ng some , where would cost come from ?
    The word "dilemma" comes from Greek where "di" means two and "lemma" means premise. Refers usually to difficult choice between two undesirable options.
    Often people seem to use this word mistakenly where "quandary" would fit better.
  • greenglide
    greenglide Posts: 3,301 Forumite
    First Anniversary Combo Breaker Hung up my suit!
    Options
    Platform charges for the switch.


    Is the OP investing on an HSBC platform? It would seem likely.
  • atush
    atush Posts: 18,730 Forumite
    Name Dropper First Anniversary First Post
    Options
    RocketRonnieRadox wrote: »
    Meaning that the protfolio is unmanaged - originally managed by an FA but the FA is no longer looking after it.

    There's your problem. Dont ever use FAs, use IFAs. And your premier manager isnt one. i have one and they know less than I do.
  • RocketRonnieRadox
    RocketRonnieRadox Posts: 46 Forumite
    Options
    Thanks for all the advice so far, I suppose this still leaves me with the following Dilema.

    1) Leave as is - hope it recovers in the mid to longer term
    2) Go with the HSBC Offering having taken a 6K hit plus the £2.5K cost or switching
    3) Bear the £420 advice cost from HSBC and find an independant

    Its difficult to know which way to go for me right now.
    As has already been said - If I move I crystalise the loss but would another fund not make up the deficit over time ?

    Yes most of my current portfolio is in UK but is the hit on the UK markets due to brexit etc only going to be shortlived ? Does it warrant a move at all ?

    Thanks again all. It just seems that whoever I take advice from has something to gain so hard to get objective help.
  • cloud_dog
    cloud_dog Posts: 6,060 Forumite
    Name Dropper First Post Photogenic First Anniversary
    Options
    I think you need to figure out what your risk profile is first before doing anything else.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.5K Banking & Borrowing
  • 250.2K Reduce Debt & Boost Income
  • 449.9K Spending & Discounts
  • 235.6K Work, Benefits & Business
  • 608.6K Mortgages, Homes & Bills
  • 173.2K Life & Family
  • 248.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards