My Mum had a smallish amount to invest after dad died. She went to a financial advisor in Oct 2006. He told her to invest in a 5year term distribution fund which allowed her to use some of the interest as income. She has lost approx 10% of the original lump sum because of the way the markets are. The advisor is saying to hold onto the fund as her investment is in gilts and commercial property. He says things always go up again and its not as if we are ar at war or the government is in debt! meanwhile the fund is still losing quite heavily, but if she withdraws her money she will lose another £3,500 in exit penalties! She is really worried.

I think she has been given duff advice from the outset! Surely he, as a financil advisor, should have seen the present market problems coming! Is there anything we can do about it?
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Jack N. She was told the fund could go up or down but that it was minimum risk. She feels that the losses far exceed her expectations. With hindsite she would have taken a fixed interest bond but he didnt offer anything like that at the time. She is with one of the big banks