Why is my Stocks and Shares ISA losing money?
If your investments have dropped in value, you might be asking yourself “why is my ISA losing money?”. It’s important not to worry. Remember, it’s completely normal for investments to go up and down in value and you haven’t lost any money yet - unless you sell your investments for lower than you paid. If you stay invested, you can potentially ride out the dip and come out better off.
There are many factors why you might see a drop in value and you won’t know for certain why that might be. It could be the specific company, the sector or the whole market experiencing some turbulence.
If it’s your first time seeing a drop in your investments, don’t panic. Look at the investments you’ve chosen and try to understand more about them. Have they, or their competitors, recently announced some news or financial results that could explain a dip in stock price?
There are some other reasons you might not immediately think about which could have played a part. For example, COVID 19 was a massive shock to the economy and impacted a lot of companies’ share price. But politics, competitors, social norms and broader sector performance can also affect your investments. To get a run down of how the stock market works, read our guide on how to invest in stocks.
The main thing to remember is not to panic - investing in an ISA is for the long term. Don’t lose sight of why you invested and your longer term goals. But whilst you might not lose money unless you sell, check your risk level from time to time and make sure it’s still something you’re comfortable with.
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