! The Sell Decision With Mutual Funds: Knowing When to Walk Away


Bruce from TX posted over 7 years ago:

Diminishing Assets of your fund is seldom mentioned a a reason to sell

Gerry Page from ME posted over 5 years ago:

If Value drops 10 - 15% I will sell and watch the price, if it goes up to where I sold I'll buy it back and set a downside limit order.

Robert Marriott from VA posted over 5 years ago:

I'm a purest in the sense that if a fund says it's a "domestic mid cap value" then it needs to be that. What I have noticed over the last several years is that many well known and respected managers have dipped into other markets to inhance performance. (in my opinion) Third Ave Value has been the biggest offender I have seen to date establishing itself as a premier mid-cap value fund and over a 5 or 6 year period moving to a "world fund" go any place buy anything type of fund.
If one is using an asset allocation model that style drift behavior can reek havoc.

Another offense and reason to consider selling is domestic funds taking on larger and larger percentages of foriegn issues. I have noticed it particularly in the large cap arena. Again if you are allocating to certain specifics, that type of fund behavior throws ones percentages off and will effect returns and risk. (both positively or negatively - you just don't know which one).

Sorry, you cannot add comments while on a mobile device or while printing.