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  • FIRST POST
    • peachespeaches
    • By peachespeaches 13th Jan 19, 7:42 PM
    • 733Posts
    • 454Thanks
    peachespeaches
    Investments M&G/Henderson
    • #1
    • 13th Jan 19, 7:42 PM
    Investments M&G/Henderson 13th Jan 19 at 7:42 PM
    Part of the money left to me by my mother was investments in M&G and Henderson. They are giving a bit of interest, but I realise with this type of investment, I could lose the lot. Im not sure whether to have the investments just transferred to my name and leave the money there (dont need it yet), or to draw it all out and put it into a fixed ISA or something similar. How can I tell if its worth doing this.

    Its M&G dividend fund
    and M&G Income distribution fund.

    also Henderson Global Equity Income Fund Class A Inc (OEIC)

    Mum had these for at least a couple of decades.

    Thank you
Page 1
    • jimjames
    • By jimjames 13th Jan 19, 7:53 PM
    • 12,960 Posts
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    jimjames
    • #2
    • 13th Jan 19, 7:53 PM
    • #2
    • 13th Jan 19, 7:53 PM
    Part of the money left to me by my mother was investments in M&G and Henderson. They are giving a bit of interest, but I realise with this type of investment, I could lose the lot.
    Originally posted by peachespeaches
    Just to clarify that for you. It's extremely unlikely that you would ever lose the lot and if that did happen the value of your investments would be the last thing on your mind as it would imply the world was ending.

    It really depends on your other investments (I'm guessing none) and attitude to risk as well as any need for the money. As you mention the value can go up and down so if you're likely to need the cash in the next few years then you may want to cash in. Depending on the amounts you don't necessarily need to do the same thing with all the money, you could draw some cash and keep the rest invested to grow for the future.
    Last edited by jimjames; 13-01-2019 at 7:55 PM.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • Alexland
    • By Alexland 13th Jan 19, 8:01 PM
    • 4,193 Posts
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    Alexland
    • #3
    • 13th Jan 19, 8:01 PM
    • #3
    • 13th Jan 19, 8:01 PM
    Only keep them if you would have otherwise chosen them - which sounds unlikely.

    Else use the money as appropriate to meet your own financial objectives.
    • dunstonh
    • By dunstonh 13th Jan 19, 8:40 PM
    • 96,442 Posts
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    dunstonh
    • #4
    • 13th Jan 19, 8:40 PM
    • #4
    • 13th Jan 19, 8:40 PM
    but I realise with this type of investment, I could lose the lot.
    What makes you think you could lose the lot?
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • peachespeaches
    • By peachespeaches 13th Jan 19, 11:21 PM
    • 733 Posts
    • 454 Thanks
    peachespeaches
    • #5
    • 13th Jan 19, 11:21 PM
    • #5
    • 13th Jan 19, 11:21 PM
    I just thought that compared to an ISA, these give a bit more of a return, but there was a risk with them. I do have other savings from my parents that are going into a cash isa so that if I need a new car, or want to help my kids and grandkids with university life , I can. I have never, ever been in the position of having cash to spare, and feel a bit bewildered. I has taken me a bit of time to get the probate done and look at what needs doing because of grieving for the loss of my parents in a short space of time. I dont want to spend it all on expensive holidays or cars, but at 59 would like to have something to fall back on.

    So tell me, how much risk is there with this kind of investment?
    • peachespeaches
    • By peachespeaches 14th Jan 19, 2:28 PM
    • 733 Posts
    • 454 Thanks
    peachespeaches
    • #6
    • 14th Jan 19, 2:28 PM
    • #6
    • 14th Jan 19, 2:28 PM
    I also have an M&G booklet that gives a scale of 1 to 7 one being low risk and 7 being high risk. The M&G investments are a 6 according to M&G so they are high risk.
    • Malthusian
    • By Malthusian 14th Jan 19, 2:49 PM
    • 5,142 Posts
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    Malthusian
    • #7
    • 14th Jan 19, 2:49 PM
    • #7
    • 14th Jan 19, 2:49 PM
    I also have an M&G booklet that gives a scale of 1 to 7 one being low risk and 7 being high risk. The M&G investments are a 6 according to M&G so they are high risk.
    Most funds on the 7 end of this scale would still not have any real risk of losing the lot (unless the world ended in which case you wouldn't care). These risk scales are largely meaningless and nobody who understands what they represent ever pays much attention to them.

    The risk with these funds is essentially that when you decided you did want to spend them (for a new car, or a holiday, or to help your kids, or whatever), they might be worth less than what they are now.

    You could eliminate this risk by cashing them in. However, when you came to withdraw them, they would definitely be worth less than what they are now due to inflation. The compensation is that the amount in pounds and pence wouldn't have changed (by more than a few quid in interest).
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