How long would you keep a mutual fund before dumping it?

Question

I'm thinking maybe a year at most?

Answer 1

Remember, mutual funds are supposed to be watched over time. Mine were doing really bad several years ago, now they are doing awesome. Talk to someone in financial services.

Answer 2

I see no reason to ever dump a mutual fund as long as the returns are sufficient. Its not unusual for a fund to have a negative return for a year. Its a long term investment and the long term returns you should consider. Now if the fund expenses rise a great deal I would consider dumping it. Fees can take a bite out of your returns in the long run.

Answer 3

I would dump a fund for 2 reasons:

1) I have reached my goal and now need to spend that money on my goal.

2) The fund has raised its fees signficantly.

I would not dump a fund because it lost money. In fact, if the fund lost money, I would buy more shares, because they would be at a discount.

BTW, you pay a higher tax for short-term capital gains. There is a tax incentive to hold your fund for longer than a year.

Answer 4

I have some I have had for over 15 years. And at least 2 I have had almost 20 years.
They still make me good money so I see no need to get out of them.

Why do you think a year at the most?
If you are investing for the long run (retirement) it's best to find a few good, different funds and stick with them.

Answer 5

That is a very involved question since there are over 4000 mutual funds. If I knew who you had or if at least if it was no-load or load I could give you some advice. The best group of funds is: www.vanguard.com

Answer 6

If it's doing well compared to other funds of the same type, might as well keep it indefinitely. If it's not, then changing after a year or even less could make sense.

Answer 7

The relevant question is whether you believe in the investment, regardless of whether you made or lost money so far. If you don't, sell.