When to sell a MF ?

[fritzo489]

If you owned a MF that had 7+% of net assets in two failed banks, FRCB 4.5% & SVB 2.24%, would you sell that fund ? Apparently the gate keepers went to sleep !

                                              Thanks for any replies, fritzo489

[johnsmith]

I only own index funds, so they probably had those failed banks.

The question you should ask is:

Why did I originally invest in this fund?

Is it still fulfilling it's purpose (for which I invested in this fund)?

if you can say yes, I still want "purpose" and it's still fulfilling it's "purpose" own it.

If either has changed, maybe time to move on.

Bulk of my investment is with Vanguard Index Funds:

33% US Total Market

33% International

33% Cash + Bonds

I have some small play money for CEFs, REITs, Preferreds etc.

How do you invest?

[anitya]

May 18, 2023 20:00:58 GMT fritzo489 said:

If you owned a MF that had 7+% of net assets in two failed banks, FRCB 4.5% & SVB 2.24%, would you sell that fund ? Apparently the gate keepers went to sleep !

                                              Thanks for any replies, fritzo489

Yes.  Bad performance, even relative to category, is tolerable to me but not bad management.  

Are they Grandeur Peak funds?

[fritzo489]

anitya,  Yes the fund is in the Grandeur Peaks collection. I will be checking on the other GP funds in my portfolio to see if they held any of the losers & amount invested.

[anitya]

May 18, 2023 23:09:14 GMT fritzo489 said:

anitya ,  Yes the fund is in the Grandeur Peaks collection. I will be checking on the other GP funds in my portfolio to see if they held any of the losers & amount invested.

Good luck to you.  It is unfortunate the way they ran that firm. 

[Mustang]

I don't chase the best returns. Very few mutual funds stay at the top throughout all market conditions. I want good returns and consistency. Every fund will under perform its category occasionally when the market turns against its investment strategy.

One of my favorite funds is Vanguard Wellington. I have owned it maybe 35-40 years. According to Morningstar it has performed in the top 25% of the moderate-allocation category in seven of the last 10 years. The top 10% three times. Looking at its trailing returns it has been in the top 25% for the 1,3,5,10 and 15 year periods. Its 1 year performance was top 10% of 683 funds. Its YTD performance is down but it is still in the top 50% and its one month and three month performance are back in the top 25%. I am fairly certain it will do well in the future. So are most of the reviewers who write about top funds. www.morningstar.com/funds/xnas/vwenx/performance

If you expect the fund to recover then keep it. If not, sell it.

Note: I am sure every index fund contains losers. An S&P 500 index fund has 500 companies. It is impossible for them all to be top performers all of the time.

[FD1000]

A typical investor should be invested in the indexes.
For a LT hold, at least 10-15 years, I would only use VG funds managed by Wellington. See (fd1000.freeforums.net/thread/18/funds-wife-own-when).

If you want to invest in other managed funds, they should be in the top 30%, and maximum number of funds should be only 5-6.

[Chahta]

May 18, 2023 20:12:42 GMT johnsmith said:

I only own index funds, so they probably had those failed banks..........

SCHX and SCHD do not own those banks. My "index" funds.