| Downside to Selling Weak Mutual Funds? |
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apple$
First Time Poster
Cash: $ 0.25
Posts: 1
Joined: 06 Jul 2005
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| Downside to Selling Weak Mutual Funds? |
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Three of my mutual funds are through Smith Barney. Not only have they been weak for three or four years (compared to their peer funds) but they have been VERY weak just before, during, and after the market collapse. I'm talking 99th percentile weak.
On top of it all, I'm paying about 2% in fees.
Are there any downsides to dumping the funds, taking the check from Smith Barney, and re-investing in low cost funds from, let's say, Vanguard?
By selling low (they've lost as much as 50% in the past few months), I wouldn't think there was a problem, since the Vanguard funds would be relatively low as well. I'm just worried that I'm missing some important consideration. (There may be some "kill fees" for some of the funds, but I can avoid those by cashing in only the older shares at this time.)
Any thoughts before I make the plunge sell these funds? Thanks!
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Sun Feb 15, 2009 12:15 pm |
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coaster
Senior Advisor
Cash: $ 1318.80
Posts: 6496
Joined: 11 Oct 2005
Location: Wisconsin
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You're talking about about funds in a taxable account, right? Not funds held in an IRA or other qualified retirement plan?
The answer is "none." Dump those suckers. 
~Tim~
Eye Candy : Why Whimsy
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Mon Feb 16, 2009 12:02 am |
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