Cashing in Shares

tyuis

Hi Guys

I have a question that I am sure some of the great minds on here can answer.

Let's say I invest a lump sum of €5000 in an Investment Fund ( Shares, commodities, bonds), the aim is to get a return on my original investment.

The Fund does well over x number of years and grows. However at the same time the value of the Euro falls dramatically from the euro price I used to buy the shares.

Would this fall in the value of the currency affect my initial investment of €5000?
And if I were to cash my investment fund when the Euro had devalued, how would this be reflected in terms of my initial investment?

I hope I made the situation clear enough for you to understand. I know that it is a hypothetical question but your answers will be very much appreciated.

Grecco

From what I gather you are thinking about buying shares on the Ftse or NYSE.
So day one you would be exchanging Euros to say sterling at that days rate then Purchasing the shares with your sterling.
After X amount of time you sell your shares at a profit and also since then the euro has fallen against sterling you convert back you do so at the exchange rate on that day, so you would also be gaining on the exchange as well.

tyuis

Thanks Grecco

Yes, i'm pretty sure that sums it up best. I was just wondering what effect any Euro currency devaluation would have on my initial investment. I was just curious if a devaluation would have any direct effect but my investment would be locked in and then change in value as the price of my shares fall or rise.

Thanks again