• Home
  • Business
  • Companies
  • Economic
  • Management
  • Marketing
  • Partnerships
  • Services
Tuesday, January 26, 2021
Business System Guide
Advertisement
  • Home
  • Business
  • Companies
  • Economic
  • Management
  • Marketing
  • Partnerships
  • Services
No Result
View All Result
Business System Guide
  • Home
  • Business
  • Companies
  • Economic
  • Management
  • Marketing
  • Partnerships
  • Services
No Result
View All Result
Business System Guide
No Result
View All Result
Home Business

Top Reasons to Ditch Your Mutual Funds

by Nala Samir
2 months ago
in Business
0
Top Reasons to Ditch Your Mutual Funds
153
SHARES
1.9k
VIEWS
Share on FacebookShare on Twitter

There are many good reasons why some investors stick to their mutual funds through thick and thin. However, for every good reason to stick to an underperforming fund, there is an equally good reason to finally ditch it.

You Need to Rebalance Your Portfolio

Given a long enough timeline, the trends in the financial markets can cause your asset allocation to veer away from your desired allocation.

That means your fund will likely grow to a large proportion of your portfolio. Such a phenomenon exposes you to different levels of risks.

To avoid this, you need to rebalance your portfolio on a regular basis. You do that by selling some units of the fund that have large weights. You can then transfer the units of the fund that have relatively small weights.

Fund Changes or Mismanagement

Many changes can happen to a mutual fund. Such changes can go against your style and preferences.

For example, an excellent fund manager may have to leave and he or she will be replaced by someone who isn’t as competent as the original manager. Other times, the manager doesn’t leave, but he or she changes his or her management style, which may not meet your expectations and preferences.

Growth in Investor

There is such a thing as growing out of your mutual fund. As you gain knowledge and become a better investor, you may realize that the fund is no longer for you.

For instance, you gain great wealth, which means you have the firepower to buy enough individual stocks. You will be able to achieve better diversification.

Changes in the Life Cycle of the Fund

Even if stocks rank as the top investments to have for the longer term, the volatility they have usually makes them a shaky investment for the shorter term.

When you are faced with some financial responsibilities like retirement, college, or some other funding deadlines, you typically have to shift to funds that aren’t investing in stocks like bond funds, which have maturities that may coincide with the time that they will be needed.

You’ve made a Mistake

Investors commit mistakes, and sometimes what they need to do to fix that mistake is to leave and ditch it.

There are instances when you realize that the fund you have bought isn’t what you really want. For example, you buy a mutual fund because you think it’s pretty good on paper. However, when the real trading happens, you discover that’s too volatile for your investing taste and risk tolerance.

You Find Something Better

Even in real-world decisions, you have to let go of the current thing to give way to something even better. For instance, even if you love your job right now, your financial needs and the professional growth you want lie in the arms of another boss and company.

In the world of mutual funds, some excellent funds can appear with innovations that are better at achieving your desired targets.

Related Posts

Difference between forensic watermarking and visible watermarking
Business

Difference between forensic watermarking and visible watermarking

January 26, 2021
Why Issue Preference Shares Instead of Common Shares
Business

Why Issue Preference Shares Instead of Common Shares

January 19, 2021
Why Crime Scene Cleaners Orange CA Are What You Need Right Now
Business

Why Crime Scene Cleaners Orange CA Are What You Need Right Now

January 16, 2021
What You Need To Know About The New Car Insurance Scheme
Business

What You Need To Know About The New Car Insurance Scheme

January 14, 2021
How Does The Car Insurance Calculator Work
Business

How Does The Car Insurance Calculator Work

January 14, 2021
How Much Will You Be Fined When Driving Without Insurance
Business

How Much Will You Be Fined When Driving Without Insurance

January 14, 2021
  • Trending
  • Comments
  • Latest
Why You Should Hire An Extended Development Team

Why You Should Hire An Extended Development Team

January 16, 2020
What is the difference between PHP, Ruby on Rails and Python?

What is the difference between PHP, Ruby on Rails and Python?

February 1, 2020
Company Uniforms Don’t Always Have to Be Pretty

Company Uniforms Don’t Always Have to Be Pretty

February 20, 2020
The Benefits Of Operating In a Healthy Working Environment

The Benefits Of Operating In a Healthy Working Environment

January 17, 2020
Difference between forensic watermarking and visible watermarking

Difference between forensic watermarking and visible watermarking

0
Small Business Details to help you get Began

Small Business Details to help you get Began

0
Economic Development Assistance Revives the American Dream

Economic Development Assistance Revives the American Dream

0
Small Company Marketing Ideas – Three Strategies for Success

Small Company Marketing Ideas – Three Strategies for Success

0
Difference between forensic watermarking and visible watermarking

Difference between forensic watermarking and visible watermarking

January 26, 2021
Photo by Kevin Bhagat on Unsplash

Photo by Kevin Bhagat on Unsplash

January 25, 2021
Why Issue Preference Shares Instead of Common Shares

Why Issue Preference Shares Instead of Common Shares

January 19, 2021
Why Are Students Heading Toward Canada For Higher Qualifications?

Why Are Students Heading Toward Canada For Higher Qualifications?

January 19, 2021

Recent Posts

  • Difference between forensic watermarking and visible watermarking
  • Photo by Kevin Bhagat on Unsplash
  • Why Issue Preference Shares Instead of Common Shares
  • Why Are Students Heading Toward Canada For Higher Qualifications?
  • Crucial Differences Between A PDF And Word File

Archives

  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • April 2019
  • March 2019
  • March 2017

Recent Posts

  • Difference between forensic watermarking and visible watermarking
  • Photo by Kevin Bhagat on Unsplash
  • Why Issue Preference Shares Instead of Common Shares
  • Why Are Students Heading Toward Canada For Higher Qualifications?
  • Crucial Differences Between A PDF And Word File
January 2021
M T W T F S S
 123
45678910
11121314151617
18192021222324
25262728293031
« Dec    

Site Navigation

  • Home
  • Business
  • Companies
  • Economic
  • Management
  • Marketing
  • Partnerships
  • Services
Business

Difference between forensic watermarking and visible watermarking

The piracy of DRM-protected content using cam-recording can be prevented by two video-watermarking solutions: Forensic watermarking and visible watermarking. Watermarking ...

January 26, 2021
Technology

Photo by Kevin Bhagat on Unsplash

There’s no denying the value of an attractive, functional website in today’s marketplace. A professional website has a multitude of ...

January 25, 2021
Business

Why Issue Preference Shares Instead of Common Shares

A company can use many ways to raise capital or funding for projects, campaigns, products, or expansions. The most common ...

January 19, 2021
News

Why Are Students Heading Toward Canada For Higher Qualifications?

Choosing where to study abroad can be daunting for most international students. Many considerations need to be analyzed apart from ...

January 19, 2021
Technology

Crucial Differences Between A PDF And Word File

Since the introduction of the Internet, electronic files have been steadily rising in popularity. It has come to the point ...

January 18, 2021
  • Home
  • Your Inquiry

© 2020 Business System Guide. All Rights Reserved.

No Result
View All Result
  • Advertisement
  • Contact Us
  • Homepages
    • Home 1
    • Home 2
    • Home 3
    • Home 4
    • Home 5

© 2020 Business System Guide. All Rights Reserved.

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In