Mutual Fund Peaking?

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snaggletooth's picture
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Joined: 2007-07-13

At what point do you stop putting new money into it?  Say I invested a lot of money into a fund a little over a year ago and it has done incredible.  The management is the same, their objectives are the same, but you still keep asking yourself, "How high can this go?".  And on the flip side, if it's in say a C share and you've held it for a little over a year, do you move out of it?
I'm not sitting here trading funds all over the place, but I am curious how some of you approach this and decide that the fund may be overheated. 

troll's picture
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Joined: 2004-11-29

snaggletooth wrote:
At what point do you stop putting new money into it?  Say I invested a lot of money into a fund a little over a year ago and it has done incredible.  The management is the same, their objectives are the same, but you still keep asking yourself, "How high can this go?".  And on the flip side, if it's in say a C share and you've held it for a little over a year, do you move out of it?
I'm not sitting here trading funds all over the place, but I am curious how some of you approach this and decide that the fund may be overheated. 

You're just kidding, right?

Ashland's picture
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Joined: 2007-03-07

Snaggle - The wrap program I use rebalances when an asset class gets out of whack by more than 10% for longer than 30 days.

Funds can keep going up forever. If you open a chart that shows performance of asset classes over time you'll see that it's rare that best performing asset class repeats for several years & the same goes for the worst performing asset class.

So, to answer your question about whether I'd remove $$$ from the fund: MAYBE! It depends on what else this guy has & how much risk he's willing to take.

troll's picture
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Joined: 2004-11-29

Ashland wrote:Funds can keep going up forever.

And to think there are those who believe that dumb asses can't become registered reps.

doberman's picture
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Joined: 2005-02-22

Ashland wrote:
Funds can keep going up forever. Quote:  
I have this on my business card!!
 

FreeLunch's picture
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Joined: 2007-06-16

snaggletooth wrote:
At what point do you stop putting new money into it?  Say I invested a lot of money into a fund a little over a year ago and it has done incredible.  The management is the same, their objectives are the same, but you still keep asking yourself, "How high can this go?".  And on the flip side, if it's in say a C share and you've held it for a little over a year, do you move out of it?
I'm not sitting here trading funds all over the place, but I am curious how some of you approach this and decide that the fund may be overheated. 

 
Obviously - a mutual fund is a portfolio of a lot of stocks.
If the management is the same, the portfolio % allocation stays the same, their diversification techniques stay the same - LOAD UP THE TRUCK!

pretzelhead's picture
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Joined: 2007-03-23

doberman wrote:
Ashland wrote:
Funds can keep going up forever. Quote:  
I have this on my business card!!
 

Me too, but mine is slightly altered: Funds can keep going up forever, guaranteed!! 

doberman's picture
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Joined: 2005-02-22

pretzelhead wrote:doberman wrote:
Ashland wrote:
Funds can keep going up forever. Quote:  
I have this on my business card!!
 

Me too, but mine is slightly altered: Funds can keep going up forever, guaranteed!! 

I like that! Mind if I use it?

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