Sellers, beware!

The classic refrain of everyone who tries to figure out investing in mutual funds is that there are too many of them, and it's really hard to know where to begin. There are obvious ways around this problem, like advisors or websites or just asking around. However, there's actually an even more difficult choice that investors face, which is at the other end of the investment cycle: which funds to sell off and when. Strangely, more knowledgeable and more involved investors face this problem a lot more than others. The reason is that those of us who are active and involved investors always have an urge to do something. Such investors generally do well because they learn, analyse and act more than others. Therefore, they start equating being good investors with doing something, often anything. Unfortunately, along with everything else, in practice, this also tra