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Investments

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

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Original poster

Nutmeg losses

23 replies

wordlehurdle · 24/02/2022 18:25

I'm really not sure what to do
I got my nhs pension and put 16000 in a medium risk (5)nutmeg stocks and shares ISA account
Today the value has dropped by 800 pounds.
I do understand that investments can lose money but should I leave it or lower the risk level?
I really cannot afford to let it go much lower

OP posts:

ChicCroissant · 24/02/2022 18:30

Stocks and Shares ISAs are more of a medium to long-term investment, how long have you had it? Ours dropped in value not long after we first had it, but over the years (we've had ours a long time now) it has been the most successful investment we've made based on the amount of interest/money it has earned. Different fund to yours.

LizDoingTheCanCan · 24/02/2022 18:31

Leave it. Investments are for the long term, your funds will recover eventually.

WhatNoReally · 24/02/2022 18:31

Chill out! The market has dropped because of Ukraine but it always rises over time. Unless you need the money imminently don't give it a second thought.

WhatNoReally · 24/02/2022 18:31

If you move it you're just solidifying the losses

Oddbutnotodd · 24/02/2022 18:32

The markets are a bit jittery at the moment so a 5% drop is not unexpected. During early 2020 shares fell massively but recovered.
Investing is for the long term and you haven’t actually lost anything. Don’t keep checking the value.

FusionChefGeoff · 24/02/2022 18:45

How long until you need it?

ThreeRingCircus · 24/02/2022 18:57

You haven't lost anything until you cash out so I would hold firm if you can. Anything in stocks and shares should be viewed as a longer term investment and there will inevitably be peaks and troughs along the way.

How long do you have until you need to access that money? I've actually just upped my risk level on Nutmeg yesterday (from 8 to 9) and have invested more but I'm viewing these investments with a 15 to 20 year timeframe if possible.

CrappyXmasMarket · 24/02/2022 19:02

This is how investments work. Sometimes they go down a bit, but mostly over the long term they go up significantly.

If you're not comfortable with that then a S&S ISA isn't the right vehicle for you.

What made you pick that level of risk?

Original poster

wordlehurdle · 24/02/2022 21:42

Thank you all , I don't need it in the short term at all so I'll just take your advice and hopefully things will even out.
They ask you to complete a questionnaire which influences your risk level !
Think I just felt a bit shocked.
New to this reall so thanks again fir the tips

OP posts:

stevalnamechanger · 25/02/2022 15:15

My answer to these things;

Delete the app, leave it and stop checking on it :)

Coconut49 · 25/02/2022 18:46

I put £20K in Nutmeg stocks and shares isa in October as Martin's money advice recommended it! It rose to £20700 very quickly then has dropped ever since. Now £19400. I am risk level 5 also after answering their questions. I probably need to delete app too. Don't need the money but can resist looking at app every day as panicking about losses. I swear when I looked this morning it was down to £19,004, but now I just looked again and it is £19400. If it gets to £20k again I think I'll withdraw it - don't think I'm cut out for risking money!

hedgehogger1 · 25/02/2022 18:49

We've lost a lot recently in our investments. Just hoping to ride it out. If it doesn't come back up again it will prob be because we have bigger things to worry about :(

Whadda · 25/02/2022 19:56

Not Nutmeg, but I’ve had €22k wiped off of my shares in the past week.

Agree with the person who said to delete the app. Just look at your statement each year.

ginislife · 25/02/2022 20:08

When covid hit I lost £20k overnight on my pension pot. I was gutted. Over the 2 years since covid it went up £50k - so £30k up over all. I've looked today and it's £15k down again. It will come back. Dont panic. Do nothing.

Catsstillrock · 25/02/2022 20:16

You need to consider that if you cash out, and out it in a savings account it will earn little to no interest and with inflation running at 8% will loose value over time.

£20k will still say £20k on the statement but the value you can buy with that is dropping quite quickly while inflation is high. And war in Ukraine is driving it higher.

So the sense that cash is a safe bet or won’t loose value is an illusion.

As others have said, a middle of the road fund should increase a few % a year over the long term - at least 5 years. But the variation can be big.
Over 2020 my investment fund went up 25% (so if I started with £20k it went to £25k) I’ve not looked but assume everything is down this week.

But I’m investing for the long term so I’m not looking.

What I do do is spread my money between funds. So I started by putting £2-3k into 10 funds, and then put more in the ones that perform well.

Fund managers are supposed to be anticipating events and moving the investments the fund holds to protect value. So that can help. But not when everything is down / falling which it pretty much is right now.

Acheyknees · 25/02/2022 20:24

When I invested for the long term, my advisor said there are only 2 figures you need to worry about. The figure you put in and the figure you take out. If you're not cashing in don't worry!

fromdownwest · 28/02/2022 16:42

'I really cannot afford to let it go much lower'

Without sounding harsh, then this is money you should neve have invested.

JayAlfredPrufrock · 28/02/2022 16:46

I check mine every day. Yes it’s down but it will come back.

I have Premium Bonds for easy access funds.

parietal · 28/02/2022 16:51

Leave it alone. don't even look at it again for another 6 months or so. it will go back up.

Ozanj · 28/02/2022 16:54

@wordlehurdle

Thank you all , I don't need it in the short term at all so I'll just take your advice and hopefully things will even out. They ask you to complete a questionnaire which influences your risk level ! Think I just felt a bit shocked. New to this reall so thanks again fir the tips

The best way to mitigate against losses is to drip feed your investments regularly from earnings if you can afford to. Because you will be taking advantage of lowish market prices and that can help to mitigate the losses. That is the strategy I use and so far, touch wood, I have managed to get consistant growth.

Weirdlynormal · 01/03/2022 10:52

@stevalnamechanger

My answer to these things;

Delete the app, leave it and stop checking on it :)

Best advice

helpfulperson · 01/03/2022 11:14

I feel we need a 'don't look at the app' support' group. It is both tempting and horrifying to look.

cyclamenqueen · 01/03/2022 11:17

Leave it in , stocks and shares are for the long run, they will go up and down but it’s the overall trend which you want. Honestly it’s best not U.K. look on a day to day basis , when Covid hit our portfolio plummeted, by this year it was up above where it was before, no doubt it’s down again this week but in a few weeks it might be up again . You have to hold your nerve.

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