On the up?

Well I logged into my ISA account today and got a pleasant surprise. After most of my funds dipped into the red it was pleasing to see my BRIC fund change from red to blue and is now showing a +0.74% profit. This may not sound a lot, but it was -30% at one point (so it has gone up over 30% in one year, which is stella growth!), and during that time I kept paying into it on a monthly basis, so I’ve basically been picking up cheaper units. This has meant that the upswing has been so much sweeter as those cheaper units jumped in value.

My China fund is also now showing a profit of nearly +13% (again it was more than -30% at one point), so it seems that a recovery is definitely under way. Most of the other funds are in the red still, but are nowhere near as bad as they were, apart from Emerging European Opps (basically Eastern Europe and Russia) which is still -40%, but even that has had some recovery. I am going to start investing in this fund on a monthly basis to see if I can pick up some cheap’ish units while it’s on the way up.

After converting most of my pension to cash last year before the big falls, over the past 6 months I have also been drip feeding most of this back into various funds, and this is also now starting to show some positive returns, it’s gained 10K just in the last month alone and is now above what it was before the crash last year, so it looks like I have managed to avoid the big falls that have caught a lot of people out (there’s a program on TV at 8pm tonight about people’s pension pots and how they’ve been decimated).

I missed the bottom of the market and could have got back in a lot earlier, but I believe it goes to show that if you take control and manage your finances pro-actively, you can turn things arouund. I think that all too often people just leave it all to their IFA, ISA or pension provider and then wonder why their ISA or pension falls so much in value.

Now if this turns into a "W" shaped recession, there could be more falls, so I just need to keep an eye on everything and be prepared to get out again. I’m not too worried about the ISA, it’s my pension pot value I want to protect, and rather see the value of it fall by 40%, I’d convert it back to cash and wait for things to settle down again (you need a flexible pension to be able to do this).

Just my 2p’s worth anyway.

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