Basics of Investing

Archive for September, 2009

Question: All that I have left of my savings……. I was so naive!?

A GENUINE CRY FOR HELP from a 79 year old.
A few years ago, I very stupidly I invested ALL of my SAVINGS (£3,000), in Aberdeen Technology.
However, soon after investing, the technology boom burst and my investment kept on dropping in value, until, at today’s date, it is worth only £763.
I have left the £763, hoping that there would be a miracle and my investment would start to grow again….but that has not happened.
In a recent letter, from New Star, the Investment Company that took over from Aberdeen Technology, it reads “the fund has not historically paid an income and once again has declared a nill distribution for the accounting period 1 December 2006 to 30 November 2007.”
I know that there are limitations on what advice can be given relative to investments, but I am hoping that someone with investment knowledge, might tell me where I should be moving my £763 to, so that I can see some growth.
Any help will be appreciated.
A genuine cry for help from a 79 year old.

Answer: This is a sad question and I am sorry that you have lost money. In 2000, following a small inheritance, I invested £3,000 in a HSBC FTSE 100 account. Over a period of about 4 years it lost half of its value and went down to £1,500. Like you, I was aghast and wondered if I should cash it in. I held my nerve and left it and now it is worth £3,700. However, the recent falls in stocks and shares has worried me once again. I think the safest investment is a mini cash ICA. However, I think you need to invest £3,000.

If I was you, I think I would move your £763 to a safer option because it seems to me that you can’t possibly re-coup your loses if you leave it with Aberdeen Technology. Good luck.

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