When is it time to sell mutual funds?

Question

Here is the deal. I invest in individual stocks and Janus mutual funds. I started with Janus back in 1997 and of course they did excellent till the crash of 2000-2003....Now I am back in the black and they are doing fairly well again......It looks like they are more diversified now but still very aggressive....I would hate to give it all back again if another crash hits. BUT, at the same time, I don't want to pay heavy taxes either or put the money in another FUND and then it does poorly........So, should I just keep on with them and ride it out? I'm 42...

Any ideas would be greatly appreciated.

Answer 1

diversify

keep some in Janus if you like it
buy some land
maybe a few individual stocks too

its ok to sell them to buy land or a house or to reinvest or pay for college

otherwise let em ride

dollar cost averaging is a concept worth learning

also, realize that its 12% average return from stocks, not a guarantee and it might go 50% down, 30% up , etc.

over the past 80 years cumulatively, its done about 12% a year on average, its a mistake to get scared and pull out early, then you only get the losses, no the gains

maybe pull out 1% a year when you decide to retire

Answer 2

if someone knew when to buy and sell investments, they would be the richest person in the world, no one knows the answer to this. one of the main reasons you buy mutual funds is to let professional money managers make their decisions, they buy and sell all the time. the stock market on average over the last 100 years makes 10% in a good year, instead of trying to figure out when and if you should sell your mutual funds, figure out a way to go out and make more money and put as much money as you can into the mutual funds and just let them alone. make sure you have a good mix of funds that don't overlap, you really don't need more than 4 or 5. and make sure your have roth ira or retirement mutual funds or annuities that you are putting money into and just let it ride.........until you may need the money to buy a house or go to school, or retire........not to buy a new car or something like that, that will be worthless in just a few years.

Answer 3

it depends on your time horizon-the amount of time these funds will remain invested. i'd suggest you get your portfolio reviewed by a professional. most will do this for free. you may feel better repositioning info a diversified portfolio of funds instead of stocks. you might be well served in a fee based account, in which your funds will be purchased at net asset value and you'll be charged a quarterly fee of approx 1.5%. this will give you diversification and professional management at a low cost. i think you'll enjoy the comfort of having a pro to meet with and discuss your plans.

Answer 4

If you sell, When you sell, you can roll the funds into an IRA or other fund where you can put it in I discreet stocks.

You have been keeping track of what percentage of your fund is profit. Beware, you can reduce your exposure to negative stock movement by converting your funds to the income sector of your mutual fund company.

Answer 5

when a comparative index shows
sell signal on mth qtr chart on

aptistock freeware

Answer 6

I would diversify a little.