Investors who experienced losses from ISAs in recent years.

As with any investment, there is always a risk that you may lose money.

However, there are some ISAs that have a higher likelihood of losing money than others. In this article, we will discuss ISAs that have lost investors money and what you can do to minimize your risk.

One of the most well-known types of ISAs is the Cash ISA. Unfortunately, the interest rates on these accounts have been extremely low for some time, and in response to COVID-19, they have fallen even further [1].

Data shows that those who invested £10,000 into a Cash ISA 10 years ago would now only have a value of £9,772, indicating a loss of capital [1].

Another ISA that has the potential to lose investors money is the Stocks and Shares ISA.

While these accounts do offer the potential for higher returns, they also come with higher risks. The value of these accounts can fluctuate significantly based on the performance of the underlying assets.

Market volatility, political and economic uncertainty, and unexpected events can all contribute to losses [2].

If you have lost money in an ISA, there are steps you can take to minimize your risk going forward…

First, consider diversifying your portfolio to spread your risk across multiple assets.

Second, make sure to research the underlying assets and their performance history before investing.

Finally, consider seeking professional advice from a financial advisor to help you make informed investment decisions.

In conclusion, while there is always a risk of losing money when investing, certain types of ISAs carry a higher likelihood of losses.

It’s important to research and understand the underlying assets before investing and seek professional advice to help you make informed decisions.

By doing so, you can minimize your risk and potentially increase your returns.

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