Stay in fund or get out?

[whitemodus]

I have about 20k in an EBS PIP to which I make regular contributions. Given the rates available for lump sums, and 7% available for regular contributions from EBS, I'm wondering should I cash in now or stay in and wait for it to recover value. (From the online balance, it seems to have lost 1k in value in the last few months)

 

[ClubMan]

When did you start this investment, why did you choose it and what is your investment timeframe and plan for the eventual use of the money? What charges apply (e.g. on each contribution, ongoing annual management fee, any early encashment penaties etc.)? What specific funds/assets is the money invested in?

 

[whitemodus]

I started 9 years ago, and I figured it as a 10 year investment. I'm not sure on exit charges other than 20% on any profits, but the exit charges will apply whenever encashment happens, so they are a given.

 

[whitemodus]

And I have no idea where the money is invested. The money is just security for a rainy day

 

[ClubMan]

I started 9 years ago, and I figured it as a 10 year investment.

So it's nearly time to cash in regardless of recent market volatility? Or have you decided that you don't need the money and will extend your investment timeframe?

I'm not sure on exit charges other than 20% on any profits

23% surely? And if you invested 9 years ago it may be a net fund in which case tax is deducted on an ongoing basis rather than the investment rolling up on a gross basis and only being subject to tax on any gains at exit.

but the exit charges will apply whenever encashment happens, so they are a given.

Yes - but I mean any other charges including encashment penalties that might apply in some circumstances but not others. What is the annual management fee? And charge per contribution? How much have you contributed to date and how much is the investment currently worth (gross - before any exit tax)?

And I have no idea where the money is invested.

You have no idea what the asset mix of the fund(s) in which it is invested is!??!

The money is just security for a rainy day

Then leave it invested until that day arrives? Maybe moving into slightly less volatile assets/funds (if applicable) as you near encashment?

 

[whitemodus]

Thanks for the advice. It's obvious I need more information to make a good decision. I'm a real amateur in this game!