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Hello,

I have invested in a mutual fund. The mutual fund had been performing quite well and I bought it at its peak. Then the Nasdaq crashed in April. The value of my investment today is almost half of what it was when I bought it. Should I hang on to it in the hopes that it will even out in the long run? Or should I sell it and look for something better.



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Well, what is the name of fund? The mutual fund only knocks down the suspects to oh 10,000 blooming things around ya know? What it is and what are you looking for? Lots of funds went down and some didn't but I'm not psychic here. Ask yourself, "Why did I buy this fund?" If you can't answer it then LEARN about funds and how they work. If you can answer then see if the fund still meets that and how it did against its peers. Also, the share price of a fund is pretty irrelevant if you consider how distributions affect things.

JB

(Wondering about those Japanese investors that are down 64% after 16 years. Or those mid-1970s US investors that had a 50% decline too.)
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I have invested in a mutual fund. The mutual fund had been performing quite well and I bought it at its peak. Then the Nasdaq crashed in April. The value of my investment today is almost half of what it was when I bought it. Should I hang on to it in the hopes that it will even out in the long run? Or should I sell it and look for something better.

Again? Doesn't anyone pay attention to the "read a few messages before posting your first message" banner?

Please read a few recent messages, such as 7539, 7532, 7526, 7397, or 7403.
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I have invested in a mutual fund. The mutual fund had been performing quite well and I bought it at its peak. Then the Nasdaq crashed in April. The value of my investment today is
almost half of what it was when I bought it. Should I hang on to it in the hopes that it will even out in the long run? Or should I sell it and look for something better.


I agree with JB. Post back and let us know what fund you're in. There are a lot of factors involved. Realize that a lot of mutual funds tanked when the market tanked. I myself had just opened up an IRA, at the peak, in Janus with the Janus Fund (jansx) and Janus Orion (jornx.) I felt the same way as you do. I then thought about why I chose those funds and discovered that I chose them for good reasons. I decided to keep them and start making contributions again while the prices are low. I have faith that when the market turns around...so will they. I hope I'm right...I will, however, continue to watch them and re-evaluate their performance (as should be done with anything that you own) so that if changes need to be made in the future, I can make them...but at least I will know that I would be making that decision on logic rather than panic.

On the other hand, if yours is a fund that, say, a broker put you into and charges extrodinarily high fees, you might want to reconsider now...I really can't comment because I don't know what fund you're in or anything about your situation.

Now, keep in mind, I'm by no stretch of the imagination an expert (believe me, I'm usually the one asking the questions on this board), but there's a book that really helped me alot. If you're new to investing, you might try it. It's called "Mutual Funds for Dummies" by Eric Tyson. He also has one called "Personal Finance for Dummies." Both are very worthwhile reading. One of the fund families Tyson really touts is Vanguard, which, after a lot of research, I highly recommend. I just rolled my husband's IRA into the TSM (VTSMX).

You should be proud of yourself for looking into things. There are people on these boards (as well as the Morningstar Disscussion boards) that are really a lot of help. Find your favorite boards and cruise them for topics that might relate to your personal situation. Look for posts from people like jbking, fzabaly, RonBass, Prometheus and others who consistently post helpful responses for people like you and me. Just make sure to give enough information about your situation (like your age, investment goals, holdings, etc.) so that they might be able to help.

Hope this helps,
Caat
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