Neat trick - bank interest

That would have been a good opportunity to add to your investments when it was 30% down..... then the newly added investments would gain more than your older investments and you'd probably be up:

lets say 30% loss on original investment of 1 million = 700,000 is the new value post 30% crash.

Add 1 million to that 700,000 = 1,700,000 effectively doubling your original investment.

the market recovers by 25%:

Whereas that original investment of 1,000,000 had it not been added to would only recover to 875,000

This of course assumes you have a spare £1m lying about of course......

This is why some people follow the pound cost averaging method of drip feeding monthly rather than one big lump sum investment, but this is at the cost of extra dealins costs.....

Assuming that you could have predicted at the time that the market would recover in the way that it has for my investments. BTW, I did move some cash into those investments when the market was low.

I also did not panic by cashing in the investments after the fall. As I have a mix of investments ranging from high to low risk I can take the gamble.

Yep, everyone has a million in cash spare sitting there doing nothing :) The alternative scenario was the time scale for the vaccines was up to 5 years and the market falls by another 30% for this extra 1 million investment!

Five things.

Firstly, a good fund manager will have sold out before the losses get that much, secondly experience shows that they make that back in couple of years, thirdly 30% inflation is equally as likely that will wipe 30% off your savings, and fourthly if the world economy crashes by 30% you probably have more to worry about than the loss of savings, and fifthly youi can alwys sell the investments,m albeit with a potential capital gains tax penalty

They would prefer 30% inflation to wipe the value of their deposits out

Well its good to see you understand that much, at least. But you should take time to understand risk reward.

There is no safe place for money. Not even gold.

Conversely most of my investments showed a 30% gain last year.

My inherited Shell shares are now less than they were 15 years ago.. But are showing strong recovery.

Yield is high too compared with the price.

so did mine

yup, that they came back up again so quickly this time was a surprise.

I don't look at my often enough. It's not a huge part of my portfolio, but when I do look I am often disappointed at the returns I am getting

And then sometimes you are taking the gamble on the fund manager being good :)

I've had past experience of choosing a fund where the previous performance has been ahead of the general market until I've invested :(

I've also had experience where the management fees have been the inverse of the fund performance (I was aware at the time of the investment that the T&C allowed management fees within a published variable range).

All but one of my equity based investments have done a lot better than just saving cash, despite the recent falls due to the pandemic. I did lose money on Marconi shares.

I'm now retired and need to sort out a few pension pots I still have invested but in general they all did quite well investing in stocks and shares. The one that is low risk and lost last year was a stakeholder pension pot where the investment was automatically transferred from high risk investments to lower risk (bonds etc) the closer to retirement that I got. A policy aimed at reducing the risk of large fluctuations in value at retirement.

Look at his performance. Its all there online.

You need to do a bit more careful thinking. And especially realise that in general if some pundit is pushing a stock he's been paid to push it to allow fund manages to sell it at the best profit bore its price collapses.

Its not a gamble as such, it is a calculated risk

Oh yes. That's another one to look at - fund management fees. There are many funds that have been sold over and over again and simply have historic money in them which is slowly bled out by managers

Also many funds are strictly controlled in what they invest in. They cannot sell everything and invest in whatever.

I worked for em, and my mum bought some and did well, Then I left and she sold em and that was the end for marconi!

I have seen extremely high gains in everything except Shell during the pandemic. I was invested in global tech and a falling pund and massive use of online services plus uber low interest rates meant that cash was chasing tech stocks.

Global tech looks to have flattened out, but Shell is recovering nicely.

Also looking at mining funds as they should improve as the global economy restarts.

So likely growth areas coming out of covid are energy and mining: tech should stay reasonably high but wont be delivering the spectacular gains it did.

If you *want* to gamble UK small caps are likely to have a huge bounce, but whether its a dead cat is moot.