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The i Paper: Should you cash in your investment Isa gains?

Journalist: Sarah Davidson, Freelance

ended 01. March 2023

Should investors who have seen the value of their Isa savings grow over the past five years cash in or reinvest? 

Some sectors have seen huge gains recently, energy and mining particularly - is it worth crystallising now? 

What would justify dipping into your Isa? House deposit, new car, investing in your own business, gifting to children? 

If someone was thinking about it, what are the questions they'd need to ask themselves before going ahead? 

Better to do it before or after the end of the tax year?

 

1 responses from the Newspage community

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Editor
Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
This all depends on what you're saving for. A diversified portfolio should be invested in all areas as it's difficult to predict what will do well in any given year. Its all about time in the market, rather than timing the market. That said, given the expectation that central banks are likely to start cutting rates in the summer, growth stocks, especially the NASDAQ, could be set to fly. The more defensive, that have done well over the last 12 months, like mining and energy could see gains reversed, but I wouldn't pull out of those sectors altogether. Some defensive stocks are offering bumper dividends. The general consensus for most likely to do well in 2023 are a mixed fixed income fund and emerging markets, particularly India, will do well if the dollar falls from its supreme high.