5 reasons to sell a mutual fund

When a key manager leaves or a fund grows too large, it's time to let it go.

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VIDEO ON MSN MONEY

38Comments
Jun 2, 2014 6:34PM
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You learn that low-fee index funds beat every actively-managed fund in history over the long term and you decide to stop letting some fund manager make hundreds of millions of dollars at your expense.
Jun 14, 2014 5:15PM
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I guess I should drop my fund that has been making money for the last 6 yrs  and belive some writer? on MSN

 

Jun 3, 2014 10:03AM
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As long these changes are consistent with YOUR investment expectations, you might want to hold on to them. As with any investment, do your research ! You may find that the new manager's investment strategy is right in line with yours. The key here is how it correlates with YOUR investments &ROI, not what others might be doing.

====>THE GRASS IS NOT GREENER ON THE OTHER SIDE, YOU JUST HAVE A BETTER VIEW OF WHAT YOUR STANDING ON.
Jun 14, 2014 7:00PM
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oh yeah...I will sell my Low Price Stock fund just because it has an excessive amount of assets. It's not important that IT IS UP 88% in the last year?  Maybe part of the reason it has a large amount of assets is because those assets are multiplying tremendously.   Who writes this garbage?
Jun 14, 2014 8:31PM
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People forget, its all about Insurance companies, and who is involved with who. You think all these changes that have happened are for the betterment for the people. Health care insurance which was part of your employment package, now costs you $$$. This is what will happen to every one, sooner or later. Until the baby boomers die off, and the norm will be for everyone to purchase a health plan, a prescription plan, etc. Obama was the the guy they put in there to make these things come about. Now, you wonder WHY, no one wants a job, and everyone wants the government to take care of them???? Where's the incentive to want to have a job with a decent health plan, provided by the employer, and an investment plan, to keep their workers around for years? Those are the questions that will need to be answered, and it'll be interesting to see what happens in the next 20 yrs.
Jun 3, 2014 12:39PM
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You see an opportunity to sell high and jump back in low
Jun 14, 2014 4:46PM
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It's time to impeach lying corrupt president Obama

Jun 14, 2014 7:04PM
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Usually when an article mentions specific investments, as this one does, the author provides some kind of statement about transparency.  I should sell Fidelity Low Priced Stock Fund when the Kiplinger author does not say if she benefits from its sale? 
Jun 14, 2014 10:16PM
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Seems people are very wary of financial encouragement from internet sources ... Can't say I blame them ...

 

Jun 15, 2014 1:22AM
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Don't think so, pretty happy with mine. A lot better than these money market  that don't give you nothing or almost. Well everyone sees noon at his door.
Jun 14, 2014 10:23PM
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what hogwash! American funds placed 10 funds which are some of the largest funds on MONINGSTARS FANTASTICS 51.

This article was written by a bumbling idiot.

Go back to school fool!

Jun 16, 2014 4:11AM
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NOTE not one Vanguard fund is listed,I am not saying they are perfect, but they have the lowest fee/loads and simply are the best.
I got rid of Fidelity and others years ago and have not regretted it for a second  (Though in many ways I think of my Berkshire stock as a Mutual)
Jun 14, 2014 10:15PM
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Does anyone really take financial advice from someone whose career contains the line "worked for msn?"
Jun 3, 2014 5:44PM
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hey, you forgot reason number 6: anthony mirhaydari says he has removed it from his newsletter list since the market direction is going to change beginning tomorrow!
Jun 14, 2014 11:01PM
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Another article to try to get people to not make money.  The rich don't want anyone to get rich just themselves.  Since 1967 I have made a lot and I mean a lot of money from Mutuals.  So just sit back and let someone tell you what to do and retire on $1500 a month or become involved and watch and make a pot of money.


Jun 14, 2014 9:51PM
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Yes agree mostly with the author. Some managers like Peter Lynch at Fidelity that ran their Magellan Fund was responsible for the excellent returns. The fund managers Fidelity tried to have run Magellan after Peter left can't match his stock picking genius. Be careful of mutual funds they will sometimes secretly move a good fun manager to one of their underperforming dog funds to try and shore up its returns and your fund will fail. I have sold my mutuals and gone exclusively into Exchange Traded Funds and Index Funds. The returns always beat the mutual funds returns. You still have to be diligent and move your money sometimes if a fund segment falls out of favor as biotech did earlier this year. I had IBB that doubles last year and is basically running flat this year. So I cashed out and bought in the stock MNKD which has the first ever inhaled insulin drug Alfrezza going for FDA approval on July 15. It is up $4 in two months. Rare exception to what stocks do, but look into it, you could make a large return in a month. The rest of my funds are in Vanguard Funds they seem to be doing the best in 2014. I'm also thinking of buying back into IBB now that it is recovering. Just some thoughts for all you fellow investors. Good luck, stay healthy, and prosper. In addition to MNKD you can read a good history of it in George Rho's article in seekingalpha.com and Mariden Partners article in the same. I also like CLR for a plan on the oil shale industry. $135 a month ago, $148 now, target price a year $255. The genius of the them is they are 3X and 4X the wells on their property to extract more oil and reveneue. Excellent return if it stays on track.
Jun 3, 2014 10:37AM
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Not a big surprise this morning, we've had a couple of decent weeks and yesterday we were able to hang in there nicely....A lot of not too happy campers here on the floor and also off it of course...Today may be their day, they sure are trying hard...We will see, still early and never give up. Be cautious though...More later.
Jun 14, 2014 4:34PM
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Why are you allowing the marketing manager of your funds, make all the profit, while you take it in the shorts???  Get out of the Market Now, another Bernie Madoff in the making.
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