When should you sell a poorly performing fund?

A primary reason as to why you should regularly monitor your investment portfolio is that you're able to figure out the bad investments you've made and get rid of them. Another reason is to make way for new investments that'll boost your portfolio, but we'll get to that later. When the equity markets are down for a prolonged period of time, one can easily see the bad returns and say that their equity investments are not doing well. However, figuring out what's actually good and bad is a little more complex than that. In such times of a market downfall the fund managers are the ones who have to undergo tremendous performance pressure as even a reasonably good performance of theirs can be misidentified as bad during such times. We need to consider in what sense a fund has performed poorly. There are three or four ways in which a fund can perform poorly and one should be able to distinguish between those in order to make a more accurate judgement of things. One way of assessin

This article was originally published on April 16, 2021.