Great news for investors, Following the turn of the financial year, annual limits for ISA contributions have increased to £7,200. However, many of the top investment funds have fallen in recent months, with Jupiter Merlin Income fund falling 4.8% and Artemis European Growth falling 6.10%.
Significant falls over such a short period can be alarming but remember market volatility is a normal part of stock market investment. Try to see these falls within a longer time frame; this may be easier if you have been invested for three years or
more. If you are investing for the medium or long term then stay put and do not panic.
Review Your Investments
Why did you invest in the first place? Were you chasing short-term gains or building a balanced portfolio for the long term. If it was the latter then hold your nerve and stay put. Dipping in and out of the market is more like to result in larger losses.
Don’t put all your Eggs in one Basket
If your portfolio is skewed towards one asset, be it UK equities or property, this will adversely affect returns if the sector underperforms. Spread your investment so if one area underperforms this can be offset by gains elsewhere.
Take Advantage of Low Prices
Christopher Sheppard of IFA National.co.uk said: "It is not all bad news. If you are in a position to invest then you can take advantage of the spring sale which exists within markets. I believe good value is available for the medium to long-term investor who is prepared to commit their capital into an ISA for the new financial year. Though is stress the importance of reviewing investments continuously and holding a diversified portfolio there is reason for optimism".
For sound Independent Financial Advice, go to http://www.IFANational.co.uk
*This article is not intended to give financial advice, please contact a financial advisor.
