# Stock and shares ISA



## snapsnap (Jul 18, 2008)

I am looking at filling this year's ISA S&S allocation using either a managed or a tracked fund.

One of the managed funds I am looking at gives this graph for past performance (taken from the following factsheet - http://tinyurl.com/4uqfn2s)










Could someone confirm my reading of the graph is correct (it is % change!). Say I invested £1000 in Nov 2009 (so the 40%-ish mark). In Nov 2010 the fund is running around 70% ish; a difference of 30%.

Does that mean my investment would have gone up 30% - i.e now be worth £1300?

Thanks


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## Bero (Mar 9, 2008)

Almost right - it would be worth £1214 as it's just a 21.4% increase (1.70/1.40 = 1.214 which equals 21.4% increase) Graphs are generally publisised when they look good, for example if you invested £1,000 in Nov 2005 you would have made nothing in the following 3 years to Nov 2008. Worst case scenarion investing your £1,000 in Nov 2007 and 'needing' money 12months later; you would have less than £700 by the following Nov.

That said, investing is good fun - just try not to put yourself in a position where you are forced to take the money out e.g. car ballon payment as the market could significantly dip just before you are forced to withdraw it


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## snapsnap (Jul 18, 2008)

Thanks Bero. Your little formula has clarified things – I knew there was a little ‘twist’ like that. Keeping the money in the fund for a good number of years is fine


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## bilt-hamber kid (Dec 4, 2007)

Snapshot - ask yourself WHY you are investing, and for how long you want to be invested. Once you have a handle on that, work backwards to what you need to do now. Why expose yourself to spicy and risky funds if you don't need the volatility or uncertainty?

Mitigate risk by diversifying across more than one asset allocation. Take into account all assets; gilts, fixed interest, bonds, equities etc.


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