When to Sell a Fund?

Q. When is the best time to sell a fund?

A. There are many factors determine when is the best time an investor to sell a fund, here are three large categories of those factors:

a. Personal Factors

1. Your investment objectives changed

2. Your time horizon changed

3. It's time to rebalance your portfolios

4. It's time to take a tax loss

b. Fund Factors

1. Change of fund managers

2. Change of fund strategies

3. Consistent (4-5 years) underperformance of benchmarks

c. Market Factors

1. Valuation concerns (near bubble state)

2. Interest rate changes (when rates go up, long term bond funds suffer)

Which factors apply to you?