Is it wise to sell mutual funds like stocks after they appreciate and re-purchase funds when the market falls?

Question

This past 2 years I have begun to invest in mutual funds and have seen some appreciation. If I believe there will be a correction in the market is it wise to sell the funds and then re-purchase them at a lower price (if the market falls). Or is it better to hold on to them even if there is a big dip and their value depreciates and purchase more shares at that time? I am looking for long term 5-15 year periods for growth.

Answer 1

Your talking about going from passive investor to trader. You bought mutual funds and paid the fees, so that your money would be managed by a professional. You pay him to grow your money. So now you're saying you can time market corrections and behavior better than your fund manager. There's nothing wrong with that, but if you can, why pay him by continuing in mutuals ? Long term, I think you will be safer where you are at, unless you are really willing to do the work required to even partially understand the market.

Answer 2

I really don't like the "BUY & HOLD" theory of investing.

That being said, it is hard to time the market, and if you have a small amount invested it probably isn't worthwhile.

you also have to check if there are fees involved and whether the mutuall fund company will let you buy and sell often.

I deal with 1/2 million at a time so a small loss in share value adds up to big money, so I watch the markets constantly, I read everything I can to try to understand "The Trends"

I will ride the small ups and downs, but I do try to time the corrections. But last year I missed out on a $100,000 gain by doing this, I did make it back this year but I was unhappy at the time.

Answer 3

You should really consider staying fully invested. In the short term, no one knows which way the market will move and missing a few good days while you are on the sidelines could cost you a lot. As you have a longer timeline, consider setting up an automatic investment program so you can dollar cost average and get more shares on the dips. Also, many mutual fund companies will not allow you to try to time the market and will force you to sit out for months.

If you want to trade for the short term, look at EFTs. They are funds that trade like stocks and you don't have to deal with market timing rules. Be advised that frequent trading could do nothing more than drive up your costs and reduce your total return.

Answer 4

You need to be watchful on how long you need to stay sold out in order to claim the loss on taxes. If its a quick sell and rebuy the IRS may disallow you a loss on your taxes. Personally I stayed in fully invested and bought over time in up and down markets which I consider the best overall approach especially if your talking that kind of timeline. Trying to time the market on short swings just didnt work for me. Good Luck..

Answer 5

maximum mutual money require a minimum of $2000 to commence, notwithstanding you will get in with$one hundred in case you set up an automatic deposit of $50/month. at the same time as making an investment in those, do your homework, in simple terms as you would as in case you've been procuring a vehicle or individual inventory. look on the transferring averages, see how they have peformed over the finest a million, 3, and 5 years. inspect the costs. try no longer to get one with an ahead or decrease back end load. there is thousands of astounding no load money accessible. ---

Answer 6

It's safer to hold on to them for the long term. If you have some "play money" that you don't mind losing. by all means. Sell high, buy low. Most people want to do the opposite. Look at it as selling at retail and then buying on sale. If you don't want to take the risk, hold and if the market goes down, buy more. Sell high, buy low!

Answer 7

1

Answer 8

Y always

do it with buy sell signal of comparative index chart mth/ qtr

check it on aptistock freeware