I have several mutual funds that I have held for a long period of time (some over a year, some for a couple of years). I'm up on most but down on a few. In light of recent volatility in the market, I'm thinking of making some changes by investing in some defensive funds. However, I'm wondering when is the best time to sell them. Should I sell only the ones that are down (thinking they may never make up the lost ground) or should I sell the ones that are up (take my profits and run). Any guidance would be greatly appreciated.
2007-03-26 06:51:53 · 5 answers · asked by kosmoistheman 4 in Business & Finance ➔ Investing
I got a chuckle from your definition of a "long period of time". It is a whole lot different from my definition.
To me a long period is about 10 years to 20 years. The mutual funds that I buy, I buy with that time horizon. The periodic ups and downs are just static. If say you hold a fund for 3 years and it does not live up to your expectations, you might consider replacing it. With a diversified portfolio of mutual funds, for a period of time some do very well and some will not do too well. Then things will change and the ones that did well will not do so well and the ones that did not do too well will then become some of the best performers.
2007-03-26 09:37:11 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Depends on the history of the mutual fund. If the mutual fund manager has a reputable record and the mutual fund holds good solid company's, eventually they will go up. right now it's a downturn in the markets, so most funds are down a bit, but there is no need to panic or do anything drastic. Patience is key and talking to a qualified pro, working for edward jones or dundee or any other brokerage firm. Buy, hold and prosper, that's my philosophy. good luck
2007-03-26 14:58:09 · answer #2 · answered by Rogerg555 2 · 0⤊ 0⤋
You have to look at your funds and see if they are still ones that you are interested in investing in. If so, then you should sell some of the ones that went up and put the money in the ones that went down, i.e. balance your account.
Look at your overall portfolio, decide where you want your money, and put it there. Sell what you have to do so. The only concern is to look when they are going to do their capital gains distributions and then maybe adjust yourself accordingly.
2007-03-26 15:27:43 · answer #3 · answered by NYC_Since_the_90s 6 · 0⤊ 0⤋
the best time to sell mutual funds is when they are high b/c they are worth more. buy when they are low. if ur in emerg then rightaway is the best time.
2007-03-26 14:03:34 · answer #4 · answered by Heer 2 · 0⤊ 0⤋
sell signal on comparative index on qtrly chart
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2007-03-26 13:58:52 · answer #5 · answered by dinu_pawar 5 · 0⤊ 3⤋