My feed
Premium

Please
or
to access all these features

Discuss investments with other users on our Investment forum. For more advice read our tips for saving for your child's future.

Investments

What to do with stocks & shares ISA

2 replies

tak1ngchances · 28/02/2012 12:52

Hoping someone can give me advice as the info on the Internet is so conflicting/confusing.
I have a stocks & shares ISA for 2 years now which unfortunately has lost 5% of its value due to market fluctuations.

I would like to transfer it to a low-risk (really no-risk) scheme.

However, I understand that I cannot transfer a stocks & shares ISA to a cash ISA for tax reasons.

So my options are:

  • Select a low-risk stocks & shares ISA (but all of them say "value can go up or down)
  • Stay with current ISA in the hopes that the market stabilises or turns positive
  • Close stocks & shares ISA and open a high-interest savings account


What would be your recommendation? I know I would have to pay tax on the last option, but I think the tax on interest would still be less than the 5% I have lost so far.

Thanks v v much in advance
OP posts:
Report
DiddyMary · 28/02/2012 18:19

I won't try giving any detailed advice, but the basic rule for investment in shares etc is to see it as a medium to long term thing - at least five years.

Report
CogitoErgoSometimes · 29/02/2012 21:35

I agree with DiddyMary about shares being a five year plus thing to iron out the market fluctuations. The last couple of years haven't been great for the stock market and it would be a pity to cash up only to find things recovered....especially if you didn't actually need the money straight away.

FWIW my stocks and shares ISA fund is one that I contribute to monthly. That way, when the market is down and the units are cheap, I get lots for my money. And when the market is up and the units are expensive, I'm still winning on the cheap units I bought earlier in the cycle. Good luck

Report
Please create an account

To comment on this thread you need to create a Mumsnet account.