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By: Rahim | August 07, 2015

  

When to sell a mutual fund? 

Mutual funds are portfolios of financial instruments such as stocks and bonds chosen by a portfolio or fund manager in accordance with the fund’s strategy. An advantage of this portfolio of assets is diversification. Typically, investors tend to compare the returns yielded by their mutual fund units with other funds or stock markets. In case the returns are lower, investors usually exit the investments without much investigation. Mutual funds are not synonymous with stocks as stocks are single entities with rates of return associated with what the market will bear, whereas mutual funds are diverse portfolios rather than single entities, hence relying only on market timing to exit mutual funds may be a useless s...

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Tags: Mutual funds