‘95pc of my investments are in oil’

Three Telegraph Money readers, and significant DIY investors, share the drastic action they have taken with their portfolios. Jessica Beard reports

Tumbling stock markets and soaring inflation have wiped years off the value of most pension pots this year. But Britain’s army of DIY investors are fighting back.

Global stocks, tracked by MSCI World, fell 11.1pc in the first six months of the year, while shares in the FTSE All- Share, a proxy for the London stock market, lost 4.6pc.

DIY investors have rushed to find inflation-beating stocks and funds that will carry them through the turbulence. But major shake-ups are risky. They can either revive a portfolio – or lock in losses for good.

Rob Burgeman, of wealth manager Brewin Dolphin, said it was only natural to be concerned when markets fall but that sticking with quality investments that can maintain their value in real terms was vital.

“Having investments in, say, Disney, LVMH [the owner of Louis Vuitton] and Unilever does not guarantee that your portfolio will never go down in value, but it does provide some reassurance that the companies are likely to survive volatile conditions,” he said.

Rebecca O’Connor, of fund shop Interactive Investor, said a reversal in market trends had tempted savers to sell out of investments that have performed worse in favour of those that appear to be doing well. “The global economy has been turned upside down, and this shift has made some investments that once looked attractive suddenly appear ugly,” he said.

However, pensions are long-term investments so time is on your side, she added. “The risk of making a hasty decision is that everything changes again, the global economy improves, inflation settles and the pressure to raise interest rates decreases.”

Here, three Telegraph Money readers with substantial self-invested pension pots share what they have been doing to weather the storm.